The reflation trade is firing on all cylinders but one this afternoon and the one cylinder which is missing, US yields are dipping, is having a negative impact on USD/JPY and the JPY crosses.
Prices dipped back to the 95.50 while GBP/JPY has slumped to 157.50. USD/JPY finds support at the 95.35/40 level on dips while GBP/JPY support comes in at 157.42.
The US equity market is holding onto virtually all its gains heading into the close, suggesting one more upside push to singe the last of the bears before the day is over. The 1000 mark in the S&P is a makeable milestone before we wrap up today. We stand now at 992.60.
