USD/JPY: more gains expected - BBH

While USD/JPY strength continues, analysts at Brown Brothers Harriman explained that the dramatically higher US interest rates helped boost the dollar against the yen.

Key Quotes:

"The dollar snapped a five-day advancing streak against the yen before the weekend, but the pullback was minor, and it held above the previous highs.  The greenback had dropped to nearly JPY101.20 from about JPY105.20  in the immediate reaction to the US election news.  

It rebounded smartly before stalling near JPY107, ahead of the July high near JPY107.50.  The dollar closed above the 200-day moving average (~JPY106.20) for the first time this year.  Technical indicators are aligned for more dollar gains.  The note of caution may come from the Bollinger Bands.  The dollar closed above the upper band for the last two sessions, for the first time since February."