FX Action: USD-JPY has ebbed back toward 113.00
FX Action: USD-JPY has ebbed back toward 113.00 after printing a one-month high at 113.44. EUR-JPY and AUD-JPY reversed out of respective two-week and one-month highs. The Yen's rebound was concomitant with European stock markets and S&P 500 futures tacking lower, with sentiment shifting to a more cautious aspect after a positive Wall Street session yesterday, and mostly positive session on Asian bourses today. Today midterm elections in the U.S. has been crimping ambition given the possible consequences for Trumpian economic policy in the event that the Democratic Party wrest control of the House. This mood served to see the Yen firm, in accordance with the usual inverse-correlative pattern. USD-JPY's fundamentals (yield differentials and the associated contrast between Fed and BoJ policy paths) remain supportive, although periodic episodes of risk aversion has been an intermittent offsetting bearish force. USD-JPY has support at 112.35-37.