No important events are expected today.

The correction in this currency pair should be used to open Sell positions for two reasons. Firstly, the decline of the U.S. government bond yields has a negative impact on the value of the dollar. We observe the decline of the American currency against most of its competitors.

Second, an uptrend in gold is positive for the Japanese Yen, as the assets are historically highly correlated. According to the CFTC, hedge funds have been increasing purchases of the yellow metal for the last two months, which also confirms a positive trend in the precious metals market. Central banks of many countries also recently actively buy up precious metal in their international reserves.

Recommendations: Sell 129.51/130.00 and TP 128.50.