USD/JPY poised for more short-term upside following Abe victory

FXstreet.com (Barcelona) - The USD/JPY currency cross enters trading Monday at 100.42 and with the wind in its sails to the upside. That the momentum may pick up in the short-term after a big election victory for Prime Minister Abe on Sunday.

USD/JPY should, in theory, rally on the Abe victory

The victory scored by Japanese Prime Minister Shinzo Abe's ruling coalition on Sunday is being viewed as bearish for the Yen as traders are betting on more of the same policies and rhetoric that has taken the USD/JPY from below 80 in September of last year to current levels at over 100.

USD/JPY key technical levels

While most technicians are fully bullish on the USD/JPY in a longer-term, macro basis, some say the short-term upside will face key resistance at 101.33. Short-term support for USD/JPY comes in at Friday’s low of 99.79. That support is followed by the 7/16 pivot low 0f 98.887 and the 7/11 short-term low at 98.23. First resistance for USD/JPY comes in at the Friday’s high 100.859, followed by Fibonacci “correction resistance” at 101.33 and the 7/8 intra-day high of 101.525.

USD/JPY trading at 100.40 region after Japanese elections

The USD/JPY foreign exchange rate has been trading sideways Monday during Asian trading, having experienced a late afternoon resurgence Friday, coupled with the Japanese electoral outcome.
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AUD/USD unable to breach 0.9200 level

The AUD/USD technical pair has been moving quite statically Monday morning, unable to breakout thus far during Asian trading.
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