### POV - Usd/Jpy has seen a steady......>

DOLLAR-YEN: ### POV - Usd/Jpy has seen a steady decline in November off its peak

of Y114.73 to Y110.84. There have been a number of factors behind the move:

* The yen has benefited from signals that the BOJ could tighten monetary policy

further in 2018.

* The US yield curve has hit its flattest level in a decade with some expecting

it to now invert.

* Continued uncertainty over the US tax reform.

Looking further ahead, the Budget Committee passed the Senate tax bill yesterday

which means the full Senate is expected to vote on tax reform as soon as

Thursday. This is likely to be a close affair with the Republicans only able to

lose two votes.

If the bill passes it will still need reconciling between both houses. Although

this could prove to be difficult, investors see this as another hurdle cleared

and could be mildly positive for the dollar.

But, as uncertainty continues any strong dollar gains are likely to be limited

in the medium-term.