USD/JPY: testing the downside of the 111 handle towards key support

Currently, USD/JPY is trading at 111.42, up 0.29% on the day, having posted a daily high at 111.79 and low at 110.96.

USD/JPY lost its footing on the back of Trump's tax plans that were announced today. The yen picked up a bid from 111.74 down to 111.13 on the back of the market's disappointments and information that was already known to some extent. 

• Full summary of Trump's tax plan
• US Dollar pierces through 99 on tax plan disappointment

Trump's tax reform was a disappointment to markets. The DXY has been trading in a range of 98.728 - 99.332 but is now moving in on the lower end of that range at 99.08. USD/JPY subsequently dropped when stocks lead the way lower on the announcements, but not by much. Focus now moves to the BoJ, US GDP and durable goods.

• BOJ to keep its policy stance intact on Thursday - Barclays

USD/JPY levels

Analysts at Scotiabank remain bullish overall. "Momentum signals have pushed into bullish territory and DMI’s are providing confirmation to the shift in the balance of risk. We look to continued gains through the 50 day MA (111.83) toward 112.50. Support is expected under 111."