A mixed background is being formed today. On the one hand, we can expect the continuation of the upward trend against the background of the positive dynamics of the stock markets, inasmuch as this currency pair is historically correlated with the stock markets of the US and Japan. The American stock market will grow on the increasing surplus of dollar liquidity from the Federal Reserve, and the Japanese market will rise in price on expectations of new stimulus measures from the Government of the Land of the Rising Sun.

On the other hand, the surplus of dollar liquidity in the financial system may limit the upside potential of this currency pair to the resistance area of 110.53, where the bulls can start taking profits, which will lead to a technical correction to the psychological level of 110.00.

Trading recommendation: flat 109.75 – 110.53.