Created on November 07, 2024

• The Japanese yen has fallen below 154.60 yen against the US dollar, reaching a 14-week low.
• This decline comes amid a strengthening dollar and US Treasury yields after former President Donald Trump made an early lead over Vice President Kamala Harris in the US presidential race.
• The results have largely unfolded as expected, with the outcome now hinging on seven key swing states.
• Domestically, minutes from the latest Bank of Japan meeting revealed that board members broadly agreed to continue raising interest rates, as inflation and economic conditions align with the central bank’s objectives.

However, they also noted that global economic uncertainty and volatility in financial markets are likely to influence future policy decisions. Meanwhile, a private survey showed sentiment among Japanese manufacturers weakened in November, driven by concerns over weak Chinese demand and persistent inflationary pressures.

According to stock trading platforms., US stocks hit all-time highs. According to trading, the three major US indices rose to record highs on Wednesday as Donald Trump secured the 2024 presidential race, defeating Kamala Harris. At the same time, the Standard & Poor’s 500 rose 2.4%, the Nasdaq advanced 2.8%. similarly, the Dow Jones rose more than 1,400 points, or 3.4%, recording its best day since 2022. Optimism about a second Trump administration is driving investor sentiment, with expectations of pro-business policies such as tax cuts, deregulation and tariffs expected to boost economic growth and corporate profits.

According to trading, the leading gains were sectors that are ready to benefit from Trump’s policies, including the financial, energy and industrial sectors. Bank stocks such as JPMorgan and Wells Fargo jumped more than 10% to record highs. Likewise, Nvidia shares rose more than 4% and Tesla shares jumped 14%. In contrast, real estate, consumer staples and utilities shares declined, with ProLogis down 1%, American Tower Corp down more than 7% and Walmart down 1%.

USD/JPY Technical Analysis and Expectations Today:

The overall upward trend of the USD/JPY currency pair is gaining strength, and Trump’s victory will bolster the bulls to achieve more. Technically, the upward movement may continue until there are Japanese signals to intervene in the foreign exchange market to prevent further currency depreciation. Especially, under Trump’s leadership, which opposes currency devaluation. Currently, the nearest resistance levels for the trend are 154.85 and 156.00, respectively.

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