The Central Bank of Japan will have a regular meeting on monetary policy on Friday, where it may announce new stimulus measures. This opinion is shared by the former member of the Board of the Bank of Japan Makoto Sakurai. This is a negative signal for the Japanese yen, inasmuch as an increase in stimulus measures always promotes sales of the national currency.

Before the evening meeting of the Fed this currency pair may renew the two-month maximum and test the area of 110.35. Then we can expect a decline in quotations, insofar as at the Fed press conference Jerome Powell will note the necessity of maintaining the current monetary policy.

Trading recommendation: flat 109.50-110.35.