USD/JPY en-route to September highs on 104 handle?

USD/JPY is currently rebounding strongly while the dollar rallies across the board and WTI oil gets onto the $52 handle and US stocks surged at open after second presidential debate.

USD/JPY is en route to the 104 handle and is the process of recovering 100% of the sell-off last week. The dollar is firm and despite the nonfarm payrolls disappointment missing expectations. The markets are thin and bulls are taking advantage and it appears that markets have made up their minds that Clinton will win the US elections while Trump's party is divided after yet further blunders by the self funded contestant to Clinton. Yesterday's debate did little favours for Trump yet it was a closer call as to actually won this time around, but it seems Trump's campaign is beyond repair and that is a positive to the dollar and the peso traders certainly think so having strengthened by over 1% after the weekend dropping to as low as 18.7870.

USD/JPY levels

USD/JPY is looking for the September high at 104.32 ahead of the May low at 105.55. "Slips should find support between the 102.79 September 21 high and the 55 day moving average at 101.92. Longer term we suspect that the market is basing and target the 107.49 July high and the 200 day ma at 108.22 at this stage," explained analysts at Commerzbank.

Meanwhile, with spot that is presently trading at 103.70, and next resistance can be seen at 103.77 (Daily High), 103.95 (Monthly High), 103.95 (Weekly High), 104.04 (Yesterday's High) and 104.33 (Weekly Classic R1). Support below can be found at 103.69 (Daily Classic R1), 103.63 (Daily 100 SMA), 103.31 (Hourly 100 SMA), 103.30 (Hourly 20 EMA) and 103.29 (Daily Open).