USD/JPY Rallies

USD/JPY continues its rally that started on the day Donald Trump was elected for President of the US. On that day the pair registered a sharp drop to 101.19 and then rapidly recovered. Since then the pair has gained some impressive weight on the bull shoulders with a high today of 109.75. The pair seems very determined to visit the resistance level at 110.30 and considering the strength we've been witnessing, this could happen even today.

However, there are only minor challenges along the way that the US bulls must conquer, namely minor resistances at current market price 109.75 and 110. If these levels are taken over, 110.30 seems a sure deal.

Overall, USD.JPY is rallying because of certain factors that happen to coincide - the pair is already above the 200SMA and it has formed a strong bottom that plays a role in the sharp gains and also, fundamentally, chances for a rate hike are now above 90% thanks to future President Trump's win in the Elections.

Chart: USD/JPY D1