USD/JPY drops to fresh weekly lows near 103.70

The JPY bulls are seen extending control for the second straight session on Wednesday, knocking-off the USD/JPY pair to fresh weekly lows below 104 handle.

USD/JPY awaits Fed outcome

The dollar-yen pair is seen making minor-recovery attempts on the back of latest comments from BOJ Governor Kuroda, after a breach of 104.00 support paved way for fresh weekly troughs reached near 103.70 region in the last hour.

The major remains deep in the red on the back of persisting risk-off market profile, led by reports pointing towards a potential Trump presidential election win, while increased cautiousness heading into the FOMC statement later on the day, also keeps USD/JPY undermined.

Calendar-wise, all eyes now remain on the US private sector employment report, which will be followed by EIA crude stockpiles data and FOMC decision later in the American afternoon. While news flow related to the US elections will be also closely monitored for further impact on the major.

USD/JPY Technical levels to watch 

In terms of technicals , the immediate resistance is located at 104 (round figure). A break above the last, the major could test 104.15 (20-DMA) and 104.41/42 (5 & 10-DMA) beyond the last. While to the downside, the immediate support is seen at 103.58 (Oct 21 low) next at 103.15 (Oct 19 low) and below that at 102.83/82 (100 & 50-DMA).