The continuation of the upward trend in the American stock market will provide good support for this currency pair, inasmuch as the Japanese yen is the world’s No.1 funding currency and is under pressure during periods of growth on stock markets. Investors in the past two decades have used the yen in carry trade operations, in which they take out loans in yen and buy shares.

The volume of industrial production in the US in September increased by 4.6% y/y, which is a good level for the American economy, which is confidently recovering from the “coronacrisis”. The broad market index S&P500 today has excellent opportunities to gain a foothold behind the psychological level of 4500 points, which will encourage bulls to buy this currency pair.

Trading recommendation: buy 113.90/113.65 and take profit 114.40.