The growth of quotes in the area of 111.70/112.00 should be used to open Sell positions, inasmuch as excess dollar liquidity in the financial system will have a negative influence on the value of the dollar. Over the past four trading days, the volume of reverse repo transactions in the United States has exceeded the $1.3 trillion mark.

On the eve, the indicator renewed its historical maximum and reached the level of $1.365 trillion. Insofar as now this currency pair is near the maximum for the last 18 months, and the excess liquidity has reached record levels, the current levels in USDJPY are attractive for “shorts”.

Trade recommendation: Sell 111.70/112.00 and take profit 111.20.