Important events today:

15:00 UTC – US: ISM non-manufacturing index for January.

The decline in quotations in the area of the nearest support levels is reasonable to use for opening Buy positions for two reasons. Firstly, the US and Japanese government bond yield spreads have grown strongly in the debt market, which leaves traders no choice but to get rid of the Japanese currency. The yield of Japanese securities is at the same level and is strictly controlled by the Japanese Central Bank, while the yield of U.S. securities has grown strongly and the FRS does not limit this process in any way.

Secondly, there is optimism in the stock markets, which is also negative for the yen, as the Japanese currency is actively used by banks and investment funds in carry trade deals and gets cheaper in the periods of risky assets growth. In the American market there is a decline in VIX fear index, which allows expecting the SP500 to grow to the highs of the week.

Recommendations: Buy 136.40/136.10 and TP 137.20.