USD/JPY: retains a bullish bias in Tokyo, extending post US election result gains, eyes 113.85

• USD/JPY is creeping higher in Tokyo and the dollar remains firmly better bid and consolidated after an impressive post-election result come back.
• USD/JPY is currently trading at 113.60, a touch of the session high of 113.63 and up from 113.46 session lows. 

The pair was bid up from a low of 112.94 and made an overnight high of 113.60 where it ended in North America at 113.54. US stocks were a strong catalyst for USD/JPY as the risk-off environment morphed into a relief rally on Wall Street.  

• Wall Street closes within a sea of green, and Trump didn't seem so 'blue' after all

"Given the results were close to predictions, the equities’ reaction may be interpreted as relief the uncertainty has ended," analysts at Westpac noted, adding, "The Democrats’ capture of the House is likely to mean less drama over government funding and the debt ceiling plus potentially extra spending on healthcare etc, but no new corporate tax cuts. Trade policy remains largely in the president’s hands, though ratification of e.g. the revised NAFTA is likely to be more difficult."

Manwhile, The BoJ's Summary of Opinions argues that inflation will accelerate "gradually" towards the BoJ's 2% target:

Key highlights

• Price growth remains weak, as inflation struggles to meet the target.
• The BoJ sees a necessity to maintain its easing policy.
• BoJ to maintain monetary policy, but also watching for negative repercussions of hyper-easy policy.
• Attention to be paid to keeping 10-year yields near zero, which could lead inflation away from 2% target.
• BoJ should consider a more flexible range of yield moves and target maturity for JGBs.
• The central bank must be "vigilant" that in case of a recession, regional banks' profits are protected.
• The monetary easing policy must be strengthened in efforts to induce policy coordination with the Japanese government.

USD/JPY levels

• Support levels: 113.00 112.60 112.30. 
• Resistance levels: 113.85 114.10 114.55.

Valeria Bednarik, Chief Analyst at FXStreet explained that the pair comes with a positive tone according to technical readings:

"Technical indicators have resumed their advances after testing their midlines, while the price held above its 100 and 200 SMA, with the shortest barely advancing below the larger one, falling short of signaling building upward momentum. Things would look better on an advance beyond the 113.85 level, with scope then to extend the advance up to 114.54, October monthly high."