USD/JPY looks to record highest daily close in a month near mid-113s
- US Dollar ındex stays quiet as investors wait for exit polls.
- Wall Street looks to end the day modestly higher.
Although the greenback stayed relatively calm, as expected, ahead of the midterm elections in the U.S., the USD/JPY pair continued to push higher and touched its highest level since October 8 at 113.50. As of writing, the pair was moving sideways in the 113.40-45 band and adding around 0.2% on a daily basis.
The US Dollar Index, which closed the previous day with modest losses, struggles to find direction so far on Tuesday. The IBD/TIPP's Economic Optimism Index fell to fell to 56.4 in November from 57.8 in October and the JOLTS job openings came in at 1.009 million to fall a little short of the market expectation of 7.1 million. At the moment, the DXY is unchanged on the day at 96.30.
Meanwhile, the positive market mood in the second half of the day didn't allow the safe-haven to recover its losses against the buck. Just minutes ahead of the closing bell, all three major equity indexes in the U.S., the DJIA, the S&P 500 and the Nasdaq Composite, are up around 0.6% on a daily basis. Previewing the midterm elections, "The midterms are not a major upside or downside risk to the short-term economic outlook, but the 2018 elections could defy all expectations and be remembered as the most important in a generation," BBVA analysts said.
Live coverage: High uncertainty around the US Mid-term Elections set to rock the US Dollar.
Technical levels to consider
Above 113.50 (daily high), the pair could face the next resistance at 113.90 (Oct. 8 high) and 114.50 (Oct. 3 high). On the downside, supports are located at 113.10 (daily low), 112.60 (50-DMA) and 112 )psychological level/100-DMA).