USD/JPY: risks mounting to the downside?

USD/JPY is holding onto the 104 handle by the skin of its teeth in a tight range as pressures mount as investors get set for key events taking place at the start of this month and polls begin to dominate.

USD/JPY is consolidating the dollar's downside after the the election polls overnight that are now narrowing and starting to be favouring Trump just less than a week away from the elections. 

Market wrap: risk aversion permeated - Westpac

The S&P 500 index and Nasdaq Composite Index dropped again as Democratic presidential nominee Hillary Clinton was behind Donald Trump for the first time since May in the latest ABC News/Washington Post tracking poll, produced for ABC by Langer Research Associates. 

In the latest results, 46 percent of likely voters support Trump, and 45 percent are for Clinton. With the data taken to a decimal place for illustrative purposes, a mere 0.7 of a percentage point divides them.

Chinese PMI: positive for risk assets - Danske Bank

Fed: On hold tomorrow, December hike more likely due to better economic data - Danske Bank

At the same time, the Yen was supported on the Bank of Japan left policy on hold (7-2 vote) yesterday.   The BOJ pushed out when it anticipates reaching its inflation target to around FY18 from somewhere in FY17, noted analysts at Brown Brothers Harriman. " The BOJ's message was still downbeat, recognizing the risks to growth and inflation were on the downside, and that recent price developments were of concern.  The BOJ has not closed the door to additional measures.  Separately, its manufacturing PMI was trimmed to 51.4 from the 51.7 flash and 50.4 in September.  It is still the highest since January. " 

Further risk events come ahead of the elections on the 8th Nov with the FOMC decision, ADP (private sector) payrolls and nonfarm payrolls at the end of the week.

USD/JPY levels

Current price is 104.09, with resistance ahead at 104.15 (Daily Open), 104.16 (Weekly Low), 104.17 (Daily High), 104.41 (Daily Classic S1) and 104.43 (Hourly 20 EMA).
Next support to the downside can be found at 104.00 (Daily Classic S2), 103.96 (Daily Low), 103.84 (Daily 20 SMA), 103.80 (Yesterday's Low) and 103.77 (Weekly Classic S1).