Yesterday, the USDJPY hit a high of 151.91 after GMT 07:00, then began falling back, marking a low of 151.57 after GMT 14:30.

On the chart it looks like a significant fall in the price. However, the difference between high and low is only a little more than 30 pips, and it actually shows that volatility is declining.

Today the USDJPY opened at 151.74, but although it had hit a high of 151.80 as of GMT 05:00, volatility remained low.

Looking at 1-hour chart of the USDJPY (as of GMT 05:15 on April 10), the price has rebounded slightly from the lower 2-standard deviation Bollinger Band.

(20-period Bollinger Band, showing +1 SD, +2 SD)

Today's main economic indicators are as follows.

• 12:30 U.S. March Consumer Price Index (CPI, MoM)
• 12:30 U.S. March Consumer Price Index (CPI, YoY)
• 12:30 U.S. March Consumer Price Index (Core CPI, MoM)
• 12:30 U.S. March Consumer Price Index (Core CPI, YoY)
• 18:00 U.S. March Monthly Budget Statement
• 18:00 U.S. Federal Open Market Committee (FOMC) Meeting Minutes

The key event will be the CPI at GMT 12:30. If it reveals signs of inflation retreating, it will open the way to an earlier cut in interest rates.