USD/JPY: bullish to 107 handle, but volatility over Fed still to come

Currently, USD/JPY is trading at 106.90, down -0.02% on the day, having posted a daily high at 106.95 and low at 106.64.

Gold sinks to lows around $1,260

USD/JPY has rallied on the back of the market's bullishness after Trump's surprise victory. Markets were nervous going into the event and had been throughout the exit polls, with the yen taking up the helm as the risk-off parking lot, but only to be sold-off again aggressively as markets actually made up their mind sooner than evidence had time to evolve, that in fact a Trump outcome was positive to global markets and the US economy. 

Watching fiscal policy and Governments, not Central Banks? - ANZ

Deficit spending is on the lips of most if not all observers and economists while a period of inflation and fiscal policy reforms, rather than a focus on Central Bankers, could well be the next big trend supporting appetite for USA and greenback denominated asset investments. Risk is on, but fragile and volatility could be here to stay ahead of the Fed next month. Fed's Bullard sees a single 0.25 hike over the next 2-3 years

USD/JPY levels

Spot is presently trading at 106.91, and next resistance can be seen at 106.92 (Daily Open), 106.92 (Monthly High), 106.92 (Weekly High), 106.95 (Daily High) and 106.96 (Yesterday's High). Support below can be found at 106.65 (Daily 200 SMA), 106.64 (Daily Low), 106.39 (Hourly 20 EMA), 106.32 (Weekly Classic R2) and 104.96 (Yesterday's Low).