Yesterday the USDJPY moved sluggishly during the Tokyo and London sessions, but began to be sold off once the New York session began. As expected, the FOMC left rates unchanged.

After the end of the FOMC meeting, at around GMT 20:00, the yen started to plunge, and just before the close it hit a low of 153.01. This dramatic fall in the price significantly exceeded 400 pips, but it is unclear whether it was the result of currency intervention by the Bank of Japan.

Today, the USDJPY rose as it recovered from yesterday's sharp price decline, and a little while past GMT 01:30 it had regained the 156-yen level.

Looking at the 1-hour chart of the USDJPY (as of GMT 03:35 on May 2), it can be seen that the market has retraced from the early-morning plunge in the price.

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

Today's main economic indicators are as follows.

• GMT 12:30 U.S. March Trade balance
• GMT 12:30 U.S. Initial jobless claims for the previous week
• GMT 12:30 U.S. Continuing jobless claims for the previous week
• GMT 14:00 U.S. March Factory Orders (MoM)