The Dollar/Yen gains as a strong NFP report raised the probability of a December rate hike pushing the greenback higher. Additionally, the Dollar/Yen pair gained as demand for the safe haven Yen dropped following positive Brexit dialogue and easing trade tensions. Most importantly, US equity futures are not trending lower removing any need for investors to demand the safe haven Yen.
From a technical standpoint, the pair managed to break above the 113.08 resistance level, however, investors need to watch prices closely at this point as the pair might form a bearish reversal double top pattern. The double top pattern will be confirmed if prices manage to break below the 13-period moving average. As long as prices remain above the three major moving averages, the bias will remain bullish and the pair will trend up towards the next resistance level at 113.78.
Support: 112.72 / 112.16
Resistance: 113.08 / 113.78