Important events today:

14:00 UTC – US: Consumer Sentiment Index from the University of Michigan.

The central bank of Japan held a regular meeting today and decided to leave the current monetary policy parameters unchanged, keeping rates and the yield target for JGB 10-year government bonds at -0.1% and 0% respectively. The regulator believes that core consumer inflation in Japan could slow in the fall, so there should be no change to monetary policy now.

This is a negative signal for the Japanese Yen, as the US Federal Reserve is poised to raise its policy rate twice more this year, bringing it to 5.75%. Meanwhile, the futures on the Fed funds rate shows that there will be one increase at the meeting on July 26, however this factor is enough to continue a strong uptrend in this currency pair.

Recommendations: Buy 140.50/140.10 and TP 142.24.