In the minutes of its last meeting, the Fed points out the stability of the credit market, which is positive for the S&P500 index, with which this currency pair is historically correlated. Spreads on commercial promissory notes and negotiable certificates of deposit for different maturities have not changed and have remained at historically low levels.

In a stable market environment, the Money Market Mutual Funds Liquidity Fund or the Commercial Paper Financing Facility were not involved. Corporate profits continued to rise, while the credit quality of non-financial corporations continued to improve. Corporate bond defaults declined in the first quarter and reached levels below the average forecasts for 2019. Against this background, I expect the growth of the S&P500 index to the level of 4120 points, which in turn will support USDJPY.

Investment idea: Buy 109.54/109.30 and take profit 110.45.