USD/JPY strongly bid on FBI clearances of Clinton emails

USD/JPY has rallied through the 104 handle on the news that the FBI has cleared Clinton on the emails.

FBI director, James Comey write a letter to Congress and said that FBI agents have been "working around the clock" to examine the new emails but "we have not changed our conclusions" when he was referring to the FBI's initial decision that Clinton had been careless, but not criminal.

Nonfarm payrolls good enough

The risk-off yen has been sold off to 104.47 the high so far as this now puts the odds well and truly back in favour of a Clinton victory. Meanwhile, there was a mediocre jobs data from Friday in the US where analysts at Westpac contradictory signals in the US payrolls report for October:

"On the plus side there were healthy upward revisions to payrolls and robust earnings, but on the cautionary side the data showed a weak industry breakdown and lower participation.Oct payrolls came in just shy of consensus at +161k (+173k expected) but with very healthy upward revisions worth +44k to the prior 2 months, implying a gain of +205k jobs net of revisions. Average hourly earnings were very robust too.

On the negative side, private payrolls were a lot softer at 142k and the industry breakdown was not particularly robust - government, education&health added a combined 71k in Oct, meaning these sectors accounted for 45% of the payrolls result. Manufacturing shed 9k, retail trade shed 1k, business services softened to + 43k (vs +78k last month). Overall "good enough" jobs growth and higher earnings should cement a December Fed hike, barring a shock from this week's election."

USD/JPY levels

USD/JPY is through the late Oct lows and eyes the 25th Oct highs through resistance at 104.80. Analysts at Commerzbank said, "Longer term we suspect that the market is basing and target the 107.49 July high and the 200 day ma at 106.97 at this stage. The base would offer an additional upside measured target to approximately 109.50." To the downside, the base of the cloud at 101.81 is a key support area and a break there could open 100.41as the  5 month support line.