A mixed background is being formed today. On the one hand, we can expect a decline in quotations against the background of an increase in dollar liquidity on the part of the Fed and the US Treasury, which today will conduct transactions with treasury securities in the amount of $43.4 billion. On the other hand, I expect a continuation of the uptrend on global stock exchanges, which will support this currency pair, inasmuch as it is historically correlated with stock markets.

For the past twenty years, the Japanese yen has been viewed by investors as the No.1 funding currency in carry trade operations. Through loans in yen, banks and investment funds finance their operations with high-yield assets. Against this background, the growth of the stock markets contributes to the weakening of the yen and, accordingly, the growth of quotations of the USDJPY pair.

Trading recommendation: flat 110.50 – 111.50.