USD/JPY: awaiting the UK election's final count for direction

Currently, USD/JPY is trading at 109.96, down -0.02% on the day, having posted a daily high at 110.15 and low at 109.75.

USD/JPY is tentative around the 110 handle and bears have found that the momentum is not with them despite the uncertainties around the outcome of the UK elections today. 

The Conservatives are headed to what looks to a be a hung parliament and PM May's gamble has not paid off, according to the exit polls. she needed at least 326 seats but only have 314 according to the exit poll. The results have so far been supporting a hung parliament but markets are volatile within a range.  There are still a large number of constituencies to go but odds are favouring Corbyn to become the new Prime Minister of the United Kingdom. Risk will then be concentrated back on Brexit f Corbyn is to be taking up the helm to steer Britain through the negotiations. 

"Right now, the market is not in panic mode, but it is shell shocked by this result," Kathleen Brooks, head of research at CityIndex.

USD/JPY levels

Valeria Bednarik, chief analyst at FXStreet explained that in the 4 hours chart, it shows that the 100 SMA maintains its bearish slope well above the mentioned Fibo level, while the RSI indicator turned flat and the Momentum losses upward strength but remains within the positive territory. "The pair can extend its upward corrective movement up to 111.60 but would take an unlikely weekly close beyond 112.00 to consider a bullish extension for next week."