FxWirePro: USD/JPY tumbles below 104 mark to hit fresh 8-month low, US election updates favor Biden’s victory

USD/JPY chart - Trading View 

Technical Analysis: Bias Strongly Bearish

The U.S. dollar stayed depressed and U.S. bond yields slipped on Friday in anticipation that a divided U.S. legislature would limit major policy changes.

Latest election updates now favor Biden’s victory. However, Trump's campaign has launched multiple lawsuits challenging the election process in several states.

That said, few investors expect Donald Trump to retain the presidency through the courts. Biden's victory is seen as a major step which will block the Democrats' agenda, such as corporate tax hikes and massive borrowing for large spending.

The Federal Reserve on Thursday kept its monetary policy loose and said that it will do whatever it takes to sustain U.S. economic recovery.

The major has slumped overnight to hit fresh 8-month lows below 104 handle. Price action has breached strong support at 104 which has opened downside.

Oversold oscillators could cause some pullbacks in the pair, but upticks are likely to be shallow. Immediate resistance is seen at 104.09 (5-DMA), while little support seen till 103 mark.