USD/JPY pops 107 handle charging to a 107.39 high in Tokyo so far

USD/JPY has gone from consolidating the bid just below the 107 handle in Asia, rallying from 101.17, to popping the 107 handle as Tokyo gets going to a high of 107.39.

Dollar shines in an eventful week in US politics

The greenback has been bid since Trump shocked the world and won the US presidential elections and markets have rallied with a flight to stocks and a sell-off in bonds. Trumps policies have sparked a risk-on rally and speculation of a return to inflation that underpins the notion of the Federal Reserve hiking interest rates and sending a complicated intrinsic value in the Yen lower. Markets now await the new President elect who gives his first post election interview at 1GMT which airs on 60-minutes this morning Asian time that could ignite some further volatility in markets early on this week. 

Wall Street at record highs on Trump victory, investors dumping bonds for stocks - BBH

From data, Japanese GDP data for Q3 came better than expected at 0.5% QoQ vs 0.2% exp and 0.2% last, while the GDP annualized (seasonally adjusted) YoY was 2.2% vs 0.8% expected and 0.7% last. We will also have a run of Chinese data after the fix today that includes retail sales and industrial production. 

USD/JPY levels

USD/JPY broke the 200 day ma recently and has eyes on 107.49 July high now. "A close above here will add further evidence to the idea that the market has based and trigger a rally towards the 108.39 200 week ma and the 110.25 55 week ma," suggested analysts at Commerzbank, adding, "Dips lower should now find that 105.55 offers nearby support ahead of the 13,12 55 day ma. The intraday Elliott wave count is suggesting a retracement into the 105.25/104.25 band ahead of further gains. The bottom of the range is a band bordered by the 100.47 5 month support line and the 99.00 June low."