USD/JPY cheers as Trump leads election race

• USD/JPY hits fresh highs as Trump wins battleground states.

• Resistance of 153.80-154.00 still in play.

USDJPY soared to a new three-month high of 154.36 as Donald Trump won Pennsylvania, Georgia, and North Carolina. Technically, the pair found solid support near its 20-day exponential moving average (EMA), keeping its upward trend in safe place.

That said, the day is not over yet, and the 153.40-154.00 barrier is still under examination. The short-term bias is skewed to the upside according to the technical indicators, though with the RSI moving closer to its 70 overbought level, we can't rule out a pullback unless the price successfully closes above 154.00. In this case the price could rocket towards the 157.00 number, which coincides with the 78.6% Fibonacci retracement of the previous downleg and the upper band of the bullish channel. The 158.50-159.40 area could be the next challenge before the door opens for the 1990 top of 160.40.

Should the bears retake control, traders may focus on the 152.00 number, where the lower boundary of the bullish channel is positioned. The 20-day EMA at 151.35 will be closely watched too along with the 50% Fibonacci of 150.75, a break of which could confirm a downside reversal. If the 200- and 50-day EMAs at 149.75 give way as well, then the sell-off could intensify toward the 38.2% Fibonacci of 148.11. Even lower, the pair may face stability near 146.20.

In a nutshell, the latest advance in USDJPY improved the upside potential, though for the rally to hold, the bulls should successfully breach the wall around 154.00.