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Business Sentiment Improves, Ruling Coalition Sees Need To Review Capital Gains Tax

JPY

Another reassessment of risk from the Omicron coronavirus variant pushed USD/JPY higher Wednesday, after Pfizer/BioNTech said an initial laboratory study showed that their booster jab was effective in neutralising the new variant.

  • USD/JPY changes hands at Y113.78, 11 pips higher on the day. A clearance of Nov 29/Dec 8 highs of Y113.95/96 would turn focus to Nov 24 high of Y115.52. Bears see Nov 30 low of Y112.53 as their initial target.
  • Bloomberg cited a leaked FY2022 tax plan of Japan's ruling coalition as noting that its lawmakers see a need to review the capital gains tax, while avoiding "damaging the environment for ordinary investors."
  • The Ministry of Finance's Business Outlook Survey showed that sentiment among large companies improved more than anticipated and remained positive for the second straight quarter.
  • Japan's PPI will be published tomorrow.

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