The situation in this currency pair is quite contradictory. On the one hand, a sharp drop in dollar interest rates on the interbank market in London signals that it is necessary to sell this currency pair on the rise to the psychological level of 110.00.

And this would be logical if it were not for the strong correlation between the USDJPY and the S&P500, which has been observed for two decades, against the background of the soft monetary policy of the Bank of Japan. For the American stock market, I expect an updating of historical maximum in the very near future.

Trading recommendation: flat 108.80-109.75.