The uptrend in equity markets is gaining momentum, inasmuch as the Fed does not plan to cut stimulus measures, which will have a beneficial influence on the quotes of this currency pair, insofar as USDJPY has been historically correlated with the S&P500 index. The problems of the Chinese developer Evergrande temporarily disappeared from the “radar” of investors, inasmuch as the company was able to fulfill its obligations to creditors.

It is possible that this is only a temporary event and in the future the company will announce a default on its obligations, but this is in the future, and now investors do not think about it and focus solely on the excess of dollar liquidity in the financial system.

Trading recommendation: Buy 110.25/109.99 and take profit 110.70.