A decline in quotes to the area of the three-week minimum of 113.25 should be used to open Buy positions for two reasons. Firstly, the world’s leading stock exchanges are showing strong growth and many of them are updating their historical maximums, which will have a negative influence on the value of the Japanese currency, inasmuch as the yen has been the world’s #1 funding currency for the last twenty years.

The yen is used for loans in carry trade operations and these loans are used to buy high-yielding assets, which primarily include shares. Secondly, on the interbank lending market in London, the dollar Libor interest rates are growing, which indicates a high demand for the American currency from bankers.

Trading recommendation: buy 113.25/113.00 and take profit 114.00.