With the outcome of the US midterm elections expected to take longer to emerge, USD/JPY is expected to trade in a range of 157.700-159.300 yen. Attention is likely to focus on developments ahead.
The morning USD/JPY forecast indicated that, while monitoring the vote count in the US midterm elections, the outcome may take longer to emerge. The House is expected to favor the Democrats, while the Senate race is expected to be close, which could potentially become a factor driving dollar selling.
The forecast range is 157.700-159.300 yen, while yesterday's closing price was up 0.5% from the previous day. A rebound in the Nasdaq Composite and an upside surprise in the US September JOLTS job openings pushed up long-term US interest rates, strengthening moves to buy dollars and sell yen.
The US October ADP employment figures and ISM Services PMI are due to be released today, and market moves may become more active depending on the results. Market participants are expected to continue assessing the market reaction to the outcome of the US midterm elections.