The pair USD/JPY continues to rise after the elections in Japan.
The pair took advantage of the outcome of the elections in Japan, which emphasize a broad victory of Shinzo Abe. For monetary policy, this means great chances to see the BoJ to keep policy accommodative, which explains the decline in the JPY.
Thus, the pair has not only an open gap to the upside, but has also continued its increase up to a peak at 114.09 in the course of the night.
We could observe a pullback to close the gap, which brings us back to the old resistance of 113.50, which should now hold as support.
The reaction on the 113.50 will therefore be decisive for the prospects upside immediate. As we held above, we could have a new test of 114.00 and possibly continue to climb to the top of the range in the medium term in the area of 114.30/50, which remains a target of a bullish major.
In case of return below 113.50, the correction is likely to be strengthened in the direction of 113.20, while below we could resume the consolidation with the most significant risks of a fall to 112.85, 112.50 and 112.30.
The pair USD/JPY is currently trading at 113.77 on the Forex.
Chart USD/JPY H1