An uptrend on world stock markets will have a beneficial influence on the value of this currency pair. On the eve, we received data on employment in the service sector from ISM – the indicator came out worse than in the last two months, which does not allow us to count on a too strong report on Non-Farm on Friday.

Against this background, investment funds and banks began to “lay” in their forecasting models the reduction of QE from the US Fed from January 1, the next year, which is positive for the stock markets, inasmuch as the more the Fed stimulates the economy, the more expensive the shares will be quoted. This rule always works! Inasmuch this currency pair has historically been correlated with the American stock market, a bullish trend on the NYSE will provide good support for USDJPY.

Trading recommendation: buy 111.45/111.20 and take profit 111.90.