USD/JPY & US Presidential Debate 2016: Volatility is on the air
Today at 01:00 GMT we'll have one of the major political events ahead of US presidential elections in November: the most watched's debate between Hillary Clinton and Donald Trump, which is expected to have a TV rating like the Super Bowl in all the United States. Markets will be watching closely this debate, as all – at least the Forex traders- are expecting to hear something about economy's insights by the Democratic and Republican nominees and it will be interesting to see the reaction from safe-haven assets.
The technical outlook for USD/JPY at H4 chart is still bearish and one would expect to see a testing of the 100.00 handle minutes before the Debate starts, as investors will be looking for safe-haven instruments, that would mean a strengthening of the Japanese currency. If Trump gets favoured by people's sentiment after the Debate, then that scenario is likely to happen, while a good perception from Clinton's words will try to push the USD/JPY pair to test the 200 SMA at least or the 101.00 psychological level.