USD/JPY getting small lift from fiscal cliff press reports
I don’t see anything new in this (and I think this whole fiscal cliff saga is a non-event) but nonetheless some people are paying attention it would seem. A report in the Washington Post suggesting that a deal is now much closer has given US equities a lift and seen Treasury yields rise. This is of course bullish for USD/JPY on many fronts, its risk positive, USD positive, and of course there is the traditional correlation between USD/JPY and US yields.
Fairly cheap risk reward trade for bulls to buy USD/JPY with a stop below the ‘gap’ level at 83.45.