“Bulls” and “bears” have the same chances of success in this currency pair. The growth factor of the Japanese stock market plays for the bulls, inasmuch as investors expect an increase in stimulus measures from the Japanese Central Bank. Japanese Prime Minister Yoshihide Suga said that he would not fight for re-election as the leader of the ruling party and would step down.

In the past, the arrival of a new prime minister has always been accompanied by a new stimulating program of the government and the Central Bank. Investors are now expecting a repeat of this trend. The factor of surplus of dollar liquidity plays for the “bears” – the surplus of dollars on the interbank market puts pressure on interest rates, and in such periods it will be difficult for the dollar to demonstrate sustainable growth.

Trading recommendation: flat 109.50 – 110.40.