Abe’s landslide re-election victory, along with the added 22 seats of his ruling coalition in the lower house, should prompt more Abenomics fiscal policy. This seems to encourages “risk on” sentiment in the Asian markets (and elsewhere) which ends up weakening the Yen. Trump is pushing for a “Hawkish” Fed chair, and the odds of a mid Dec. rate hike by the Fed are pushing 80%, which most likely strengthens the dollar in the near term while the market prices in the hike.
The pair already had a nice little rally late last week which has the 4hr stoch overbought, so I am looking for a bounce off of the monthly M3 which should give the 4hr stoch a chance to find the oversold range along with a Japanese PMI (Nikkie) data release early in the Asian session, and maybe even find its way to the US PMI (Market) release early in the US session. There is also a chance it could bounce right away off of the weekly m3 since the 1hr stoch is approaching the oversold range while filling the weekend gap. I’m looking for a weekly m5 (115.40 area) target, off of the 113.50 bounce, or a 116.50 target area under the monthly, R2 off of the Monthly M3 bounce. Stay safe, use stops, and happy pip hunting.