USD/JPY's trade war and global slowdown-related downtrend was interrupted by consolidation of extremely dire drops in U.S. yields after Fed's Evans today sounded far less concerned about the need for a rate cut than Bullard did yesterday and Mexico's President said he expected a deal with the U.S. on immigration to end the threat of tariff hikes .
But Trump thinks tariffs on Mexico will happen Monday nL9N21K01M.
Today's rebounds in U.S. yields and USD/JPY have been halted by Trump's comments.
The bounce in deeply oversold 10-year Treasury yields was reinforced by Monday's low completing a 61.8% retracement of the 2016-18 rise and holding above 2017's low by 2%.
Regardless of Evans's more hawkish comments today, there is no sign that the central threat to global growth, the U.S.-China confrontation, is cooling off .
An eventual deal with Mexico to eliminate a new set of U.S. tariffs that threaten deeply intertwined U.S.-Mexico supply chains would be a breath of fresh air in an otherwise suffocating global atmosphere, one featuring contractions in many major economies' manufacturing sectors.
Given Trump's comments today, things might get worse before they get better.
USD/JPY's upside looks limited by cloud and options .
107.27/29 remain the prime downside objectives.