FxWirePro: U.S. dollar retraces previous session's strong gains, investors await final vote counts of U.S. presidential election

USD/JPY chart - Trading View 

USD/JPY erased most of the gains on Wednesday to close 0.07% higher at 104.49. Stiff resistance was seen at 55-EMA and daily cloud.

The major is seen extending weakness on the day and was trading 0.19% lower at 104.29 at around 04:50 GMT.

As investors await final vote counts of the U.S. presidential election, results from several states gave a narrow lead to Democrat Joe Biden. Traders also await Fed policy decision at 1900 GMT. 

Markets cautiously optimistic Joe Biden would edge past Donald Trump, boosting the likelihood of more economic stimulus.

However, chances of a divided Congress remain which could made major policy changes difficult to enact. 

The VIX volatility index, hit a two-week low of 28.0 after spiking to a four-month high in the run-up to the election.

Technical studies are bearish. USD/JPY set to extend weakness. Scope for test of 104 support. Break below will plummet prices.