Japan's ruling coalition, the LDP and its junior partner Komeito, will formulate their fiscal 2015 tax reform policies on Tuesday. If Japanese media reports are to be believed, they will cut the corporate tax rate by more than 3.29 percentage points in the fiscal years 2015 and 2016. Such a decision would be seen as positive for Japanese stocks while negative for the yen. USD/JPY has seen volatile moves today amid thin liquidity. The pair fell as low as 120.16 in the Asian session but later recovered to trade around 120.42.
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