USD gained a little strength early today by the latest comments from the US Secretary of State Mike Pompeo from the United Nations (UN) meet. The Trump administration member thanked, France, Germany, and the UK, via twitter, as they backed rejection to China’s claim over the South China Sea.

Elsewhere, the Fed Chair Jerome Powell said, in the first of testimony, that the path ahead of the economy remains “highly uncertainty”. Further, the Federal Reserve Bank of St. Louis President, James Bullard, also spoke dovish on an interview while saying, that the Fed will be much less pre-emptive about hiking rates.

Not only the Federal Open Market Committee (FOMC) members but the decision-makers from the European Central Bank (ECB) and the Reserve Bank of Australia (RBA) also marked their worries in the latest appearances.

China’s highly influential media outlet, Global Times, carried an editorial-opinion piece on Tuesday, citing that the government is unlikely to approve the agreement between Tik Tok’s parent company ByteDance and Oracle, already approved by US President Donald Trump on Sunday.  “Oracle will have the authority to check the source code of TikTok USA and updates. As the TikTok and Douyin should have the same source code, this means the US can get to know the operations of Douyin, the Chinese version of TikTok.“

“TikTok Global will control the business of TikTok around the world except for China. It will block IP from the Chinese mainland to access it. This means the Americans can take control of the global business of TikTok and reject Chinese to access it.”

Worries about the disappointing pace of fiscal stimulus in the US there are plenty of economic factors to concern investors. Added to this are fears about possible disruption from the US election in addition to various geopolitical factors.

In the meantime, developments surrounding the corona virus saga will continue to play a key role in influence the broader market risk sentiment. This coupled with second-tier US economic releases – Existing Home Sales and Richmond Manufacturing Index – will be looked upon for some trading impetus.

USD/JPY 4 Hour Chart:

Support: 104.13 (S1), 103.62 (S2), 103.25 (S3).

Resistance: 105.01 (R1), 105.38 (R2), 105.89 (R3).

Amid the risk sentiment creating worries among the investors, we expect a mixed trend for USD/JPY.