Important events today:

13:45 UTC – US: composite PMI.

Japan’s central bank is afraid to raise interest rates for now and has kept monetary policy unchanged. The Land of the Rising Sun has so far maintained its ultra-soft monetary policy, including the world’s latest negative interest rate, even though the country’s inflation has remained above the 2% target for over a year now. There are rumors in the market that the 150 mark in this currency pair could be the “trigger” for an intervention from the Bank of Japan.

Since there are about 200 points to this level, investment funds and speculators will attack the yen and try to accelerate quotes to the psychological mark. On the debt market everything is unchanged – the yield of American government bonds is going upward, the yield of Japanese securities is practically standing still. The difference in yields will have a favorable impact on the continuation of the uptrend in this currency pair.

Recommendations: Buy 148.10/147.80 and TP 149.00.