Having initially played hard on the US Democrats’ easy money demands, which likely weigh his chances of winning in the upcoming presidential elections, Trump tries to convince the market that he is not the reason for the delay in the much-awaited stimulus package. In his latest comments, US President said he wants the biggest stimulus deal that House Speaker Nancy Pelosi’s plan. The White House Chief also mentioned that COVID-19 vaccines will be coming out very soon.

Meanwhile, House Speaker Nancy Pelosi has called on the Trump administration to reconcile remaining disputes on corona virus stimulus legislation within 48 hours as lawmakers attempt to pass a bill before the 2020 election. Pelosi set the 48-hour deadline on negotiations after speaking with Treasury Secretary Steven Mnuchin on Saturday night for more than an hour. They agreed to speak again on Monday.

In an interview on Sunday, Pelosi said the deadline has to do with lawmakers’ ability to get a deal done before the Nov. 3 election, which is just over two weeks away. The speaker said she’s optimistic about negotiations but that the outcome ultimately depends on the White House.

On the other hand, Japan’s September month Trade Balance shrank from ¥989.8 B market consensus to ¥675 B. Details suggest -17.2% figures for Imports versus -21.4% forecast while Exports have dropped from -2.4% expectations to -4.9% YoY during the stated month.

And regarding the election, Fifteen days out from Election Day, Biden leads Trump by about ten points in national polls and has a narrow lead in several battleground states. The pair is due to face off in a final debate on Thursday.

“Markets will be attentive to any potential shift in polls, although traditionally the last debate has less impact in public opinion,” Barclays analysts said in a note. “The main risk for markets now would be a tightening in polls, which would reduce the likelihood of a large Democratic fiscal stimulus package and could raise the likelihood of a long-contested election.”

USD/JPY 4 Hour Chart:

Support: 105.24 (S1), 105.08 (S2), 104.98 (S3).

Resistance: 105.50 (R1), 105.61 (R2), 105.76 (R3).

We expect a bullish trend for USD/JPY. Attention will be given to the speech by Fed Chair Jerome Powell, at noon for the next direction of the market.