Today is a day off in Japan and against this background, we should not count on high volatility in the first half of the day. An uptrend in this currency pair is gaining momentum and it is advisable to use a correction to the nearest support levels to open Buy positions.

The Japanese authorities approved a new anti-crisis program in the amount of 55.7 trillion yen, which will have a positive influence on the Japanese stock market and a negative influence on the national currency, inasmuch as the growth of the money supply historically leads to a depreciation of the currency. It is impossible to ignore the growth of dollar rates on the interbank market in London – bankers are waiting for the Fed’s monetary policy tightening and are playing back this event in advance by raising Libor rates. This process will support the US currency.

Trading recommendation: buy 114.73/114.50 and take profit 115.30.