The Dollar/Yen pair rises in parallel with US stocks as strength within US equities drives investors away from safe haven currencies such as the Yen. For a while now, this pair has been trending in parallel with US equities meaning that US equities is a strong driver to the pair’s performance. For today, traders need to focus mainly on the outcome of the US midterm congressional elections as it will play a part in determining investors' sentiment and confidence going forward. A failure by the Republicans to keep control of both the House and the Senate will cause a drop in sentiment due to expectations that the Democratic power will dampen President Trump’s expansionary and economic easing efforts.
The Dollar/Yen continues its rise following the break of the 113.08 resistance level. The break of this resistance level paves the way for a rise towards the next key level at 113.78. Such outcome is very likely given that all three major moving averages are pointing upwards, representing strong bullish momentum. Note that a break below the 13-period moving average and the 113.08 level will cancel the scenario of a rise towards 113.78.
Support: 112.72 / 112.16
Resistance: 113.08 / 113.78