The Bank of Japan (BOJ) ramped up its Japanese Government Bond (JGB) purchases in 1-3 years maturities by JPY500 billion vs. JPY420 billion previous, in its routine daily operation. The central bank also boosted the buying of JGBs in 3-5 years maturities to the tune of JPY420 billion from the JPY350bn purchases seen previously.

Jibun Bank Services PMI for October exerted additional support for yen while rising past-46.9 initial forecast to 47.7.

On the other hand, Joe Biden inches closer to winning the US presidential election after the latest victory in Michigan hiked his electoral count to 264 versus 270 required. On the other hand, US President Donald Trump & Company battles with Pennsylvanian authorities over ballot counting after already applying for the vote recount in Wisconsin.

The United States set a one-day record for new corona virus cases on Wednesday with at least 102,591 new infections and as hospitals in several states reported a rising tide of patients

Nine states reported record one-day increases in cases on Wednesday: Colorado, Idaho, Indiana, Maine, Michigan, Minnesota, Rhode Island, Washington, and Wisconsin. The pandemic has affected nearly every aspect of American life, including a record number of voters mailing in their ballots in Tuesday’s presidential election, whose outcome has yet to be decided.

In addition to rising cases, on Tuesday hospitalizations topped 50,000 for the first time in three months. North Dakota reported only six free intensive care unit beds in the entire state on Wednesday when it was one of 14 states that reported record levels of hospitalized COVID-19 patients.

 USD/JPY 4 Hour Chart:

Support: 103.98 (S1), 103.46 (S2), 102.79 (S3).

Resistance: 105.17 (R1), 105.85 (R2), 106.37 (R3).

The upbeat data for Japan and Us election results favors Yen against Dollar and we expect a bearish trend for USD/JPY.