USD/JPY climbs all the way back
Maybe a tax cut is not so bad after all.
It is difficult to say if the market is a handicap if the tax reduction is also good for the growth as expected (this is probably the case) or if it can pass (harder to say).
In any case, we are back to neutral.
After the fall of 113.54, USD/JPY is all the way back to 114.16, which is slightly higher than before the tax plan began to circulate.
As for what’s next, I’m watching 10 year yields. They are still down 2 basis points to 2.35% and 2.40% is the key level.