USD/JPY recovering after US elections
|Given the current risk-on sentiment, money has been flooding Equities after Trump's indication to lift fiscal spending and implement tax cuts. Yields are rising in the US as funds leave Fixed Income for risky assets like Equities. There will be a crowding-out effect also lifting borrowing rates in the US when Trump's proposed infrastructure spending of USD500Bn (3% of US GDP) actually takes place, also good for the USD longer term.
On H4 chart we can see 2 POC zones. First POC is shallow retracement but sometimes during strong trends the price wont go deeper then 23.6 and it might push higher from that spot. 105.45-60 is POC 1 (H5 previous resistance now support, 23.6, bullish order block). We should monitor this zone to see if it will spike the price higher to 107.00 and 108.20. If the price tanks lower , it might drop to POC2 104.10-40 (50.0, EMA89, H4, V shaped reversal). The zone is wider due to US post election ATR. Targets are 107.00 towards 108.20
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