Sale of defensive assets will have a positive influence on the value of this currency pair. Investors are selling defensive assets, which include gold, the Japanese yen and the Swiss franc, inasmuch as the Fed’s soft monetary policy contributes to the capital inflows into “risky assets”.

The head of the Federal Reserve System has once again announced that the regulator will print money for so long time and keep rates close to zero. Investors have no choice except selling defensive assets and buying high yielding assets. On the eve of the American stock index DJI30 exceeded 32,000 points for the first time in history. The uptrend is taking shape, which will have a positive influence on the value of USDJPY.

Investment idea: Buy 105.66/105.50 and take profit 106.04.