FundamentalOverview

The US Dollar is higheracross the board today as Trump got elected President of the US. TheRepublicans won the Senate, and they just need the House now to get a redsweep.

That is the most bullishscenario for the greenback as it would make the tax cuts easier to pass whichshould lead to higher growth and less rate cuts expectations. As of now, theprobabilities are in favour of the Republicans.

Given the above and thestrong US data we keep on getting, the Fed might start to change its stance andwe could see a much earlier than expected pause in 2025.

USDJPYTechnical Analysis – Daily Timeframe

On the daily chart, we cansee that USDJPY bounces from the key supportaround the 152.00 handle. The buyers will now start targeting the 160.00 handle,while the sellers will need to see the price falling below the 152.00 handle toinvalidate the bullish setup and position for new lows.

USDJPY TechnicalAnalysis – 4 hour Timeframe

On the 4 hour chart, we cansee that the price is consolidating around the highs. This is where we canexpect the sellers to step in to position for a drop back into the 152.00handle, while the buyers will keep on piling in around these levels to extendthe rally into new highs.

USDJPY TechnicalAnalysis – 1 hour Timeframe

On the 1 hour chart, we cansee that the price is trading above its average daily range for today. Generally, we can seesome consolidation or a bit of a pullback in such instances, but since theelection is a big catalyst, we could even see the market extend much above it.

UpcomingCatalysts

Tomorrow we have the Japanese wage growth data, the US Jobless Claims and theFOMC Policy Decision. On Friday, we conclude the week with the University ofMichigan Consumer Sentiment report.