The dollar rallied 150 pips against the yen on Monday as traders scrambled to get on board of the latest move. Trump's proposed fiscal stimulus in form of tax cuts and infrastructure spending worth several $tn are leading markets to price in a steeper path of the federal funds rate.

Japanese GDP came in better than expected. That supported the Nikkei and the pair. Now even more so, U.S. dollar based investors are paid to hedge yen exposure. Technically, 38.2% retracement of the 2015 - 2016 downswing at 109.25 is the next target and then the big 110 level.

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