A bullish rally in the US stock market will boost the price of this currency pair, inasmuch as USDJPY has been historically correlated with the S&P500 index. The situation is perfect now for “bulls” in the US stock market. Firstly, all last week we received positive macroeconomic statistics from the United States, which indicate that economic growth is accelerating, which will have a positive influence on corporate income.

Secondly, the Federal Reserve will keep the discount rate near 0% for a long time, and corporations plan to increase dividend payments this year, which also adds optimism to investors.

Investment idea: Buy 110.50/110.30 and take profit 111.00.