The USD/JPY pair is currently trading at the session low of 109.70, having faced rejection at the psychological hurdle of 10.00 for the third day straight.
President Trump, in his State of the Union Address, cited war, politics and ridiculous partisan investigations as obstacles to the US economic growth and criticized China for stealing intellectual property rights. He also offered his take on Border Wall, health insurers and drug prices.
Trump's comments hit the wires a few minutes before press time, but have not had any impact on the equities, treasuries or even the Mexican peso. As of writing, the S&P 500 futures are trading flat-to-positive. The 10-year treasury yield is flatlined at 2.7 percent and the USD/MXN is up just 0.10 percent on the day.
So, the drop in USD/JPY (uptick in JPY) seen in the last few minutes may have got more to do with the repeated bull failure at the psychological hurdle of 110.00 rather than Trump's comments.
Looking ahead, the dollar could pick up a strong bid if the US fourth-quarter unit labor costs blow past expectations, forcing the market to reassess the Fed's recent dovish turn.