FX.co ★ Global macro overview for 26/04/2017

Global macro overview for 26/04/2017:

Interesting developments regarding major overhaul in the US corporate tax plans are being reported by financial newswires. According to one of the US administration official, President Donald Trump's tax plan will be released on Wednesday and it will slash tax on repatriating corporate profits earned overseas to 10 percent. Moreover, Trump's tax plan will cut the top tax rate on pass-through businesses to 15 percent from 39.6 percent, but will not include "border adjustment tax" on imports from the House Republican tax proposal (however, the border tax may be revisited later). In conclusion, a very ambitious tax plan that might support Trump's "weak dollar" policy is mainly against the Japanese Yen.

Let's now take a look at the USD/JPY technical picture on the H4 timeframe. After the golden trend line breakout, the bulls have managed to test the 78%Fibo retracement of the last swing, but the overbought trading conditions and the shooting star candlestick pattern might indicate a corrective cycle to come soon. The technical resistance at the level of 111.58 is still a key level to the upside, so if the bulls want to confirm their control over this market, they must break out above this level. The next important support is seen at the level of 110.56.