No important events are expected today.

Japan provided fresh inflation data for June – the core rate, which is closely monitored by the Japanese Central Bank when making monetary policy decisions, rose by 0.1 p.p. to 3.3%. Core inflation is holding steady above 3.1%, exceeding the Japanese regulator’s target. Next Friday, the Japanese regulator will hold a regular meeting, where it may hint at a future reduction in stimulus measures, if inflation remains at the current level.

Most likely, the Central Bank of Japan will gradually remove stimulus measures, otherwise the collapse of the local financial system will begin, which has been living with the “printing press” turned on for the last 10 years. Thus, the Japanese yen may start to strengthen from next Friday, while we will see a slight strengthening of the dollar on the background of rising yields on U.S. government bonds.

Recommendations: Buy 139.84/139.50 and TP 140.80.