Although the USDJPY reached 160 yen yesterday a little while after GMT 01:30, it then quickly fell back. After GMT 04:00 the price began a plunge of more than 500 pips, ending in a low of 154.50 yen between GMT 07:00 and GMT 08:00.

Some market participants believe these dramatic moves were caused by currency intervention by the Bank of Japan, but the truth of the matter is not yet known.

Today the USDJPY opened at 156.33 before rising gradually to hit a high of 157.00 between GMT 01:00 and GMT 02:00.

Looking at the 1-hour chart of the USDJPY (as of GMT 03:05 on April 30), the level where the price broke below the -2 standard deviation Bollinger Band several times has become a floor, and the price is now moving slowly upward.

Big price moves such as those seen yesterday tend to clear out most existing limit orders and stop orders, resulting in the market temporarily losing its energy and direction. Accordingly, the current leisurely price movement may continue for a while.

(20-period Bollinger Band, showing ±1 and ±2 standard deviations)

Today's main economic indicators are as follows.

• 12:30 U.S. Q1 Employment Cost Index (QoQ)
• 13:00 U.S. February Case-Shiller home price index (MoM)
• 13:45 U.S. April Chicago Purchasing Managers Index
• 14:00 U.S. April Consumer Confidence Index (Conference Board)