USDJPY: Trump victory could push the dollar below JPY100 - BBH

Research Team at BBH, notes that the US dollar has fallen three yen against the Japanese currency since reaching a three-month high near JPY105.50 on October 28.  

Key Quotes

“The greenback's retreat retraced more than 50% of its rally from the last September test on the JPY100.  However, the dollar was unable to close below that retracement (~JPY102.80), which corresponds to the lower Bollinger Band and the 100- and 200-day moving averages.  It stopped shy of the 61.8% retracement near JPY102.20. 

The technical indicators are mixed, with the RSI curling up and the MACDs turning down from elevated levels.  The Slow Stochastics show a bearish dollar divergence.  A Trump victory could push the dollar below JPY100.  The Brexit low was near JPY99.00.  The JPY95 area is the 61.8% of the Abenomics rally.  There is the longstanding objective of the head and shoulders pattern carved out last year on the weekly charts near JPY92.00.”