USD/JPY clings to gains near 3-month highs

USD/JPY has entered a consolidation phase near 3 ½-month highs scored on Thursday, as the dollar retains a firm tone while investors digest Trump’s victory.

USD/JPY briefly rose above the 200-day SMA and peaked at 106.94 before entering a quieter phase over the last hours, with the latest US jobless claims release unable to offer the greenback fresh momentum.

US initial jobless claims declined by 11,000 in the week ended Nov 4 to a seasonally adjusted 254,000.This reading was the lowest level in four weeks and came in below the 260,000 new claims expected by analysts.

Meanwhile, speaking in St Louis, Fed's Bullard said he sees a 0.25% rate hike and then extended hold in monetary policy. Low interest rates are likely to be the norm over the next two to three years, he said.

USD/JPY technical levels

In terms of technical levels, next resistances could be found at 105.49 (Oct 28 high), 106.00 (psychological level) and 106.60 (Jul 27 high). On the flip side, supports are seen at 102.54 (Nov 3 low), 101.18 (Nov 9/Oct 3 low) and 100.74 (Sep 30 low).