After over three decades, the Japanese Nikkei 225 index has finally surpassed the previous peak. This significant milestone was achieved through a combination of attractive valuations, a weakening yen, and a rebound in global equity markets. {chart} The TOPIX and Nikkei 225 ratio closely mirrors the spread between Japan's 10-year and 2-year yields. Historically, a flattening yield curve sees the TOPIX underperform relative to the Nikkei 225. Despite a recent notable yield curve steepening, the ratio remains lagging. {chart} The USD/JPY pair has breached the 150 level, forming a distinct cup-and-handle continuation ... (full story)