JPY: Still the best vehicle to play US tax reform - ING
Away from the US tax reform and generally positive US data, the focus this week will be Trump's trip to Asia and will have an impact on the direction of USD/JPY, suggests Viraj Patel, Research Analyst at ING.
“North Korea has been quiet recently, but could re-emerge were missile tests to be used to grab attention. Assuming that doesn't happen, the USD/JPY story looks constructive.”
“In terms of data, the US calendar is very quiet (talk of Taylor getting appointed as Fed Vice Chair?) and there are just a few Fed speakers. Japan sees current account data and minutes from the Oct 31st BoJ meeting - unlikely to challenge the view that JGB yields remain anchored while US yields rise.”