Yesterday the USDJPY opened in the upper half of the 154-yen range and promptly recovered to the 155-yen level. It trended upward throughout the day, and hit a high of 156.30 at around GMT 09:00.

Although the price subsequently declined, the ISM Services PMI for May, which was announced yesterday, came in at a strong 53.8 compared to a forecast of 50.8. In response the USDJPY rose to 156.48, which was a new high for the day.

Today the USDJPY began trending downward in the first half of the Tokyo session, setting a low of 155.35 shortly after GMT 01:30.

Looking at the 1-hour chart of the USDJPY (as of GMT 04:10 on June 6), it is noticeable that the walk along the upper band has come to an end, and that the price has reached the -2 standard deviation. It seems likely that the key point will be whether it transitions to a band walk along the lower band.

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

Today's main economic indicators are as follows.

• GMT 12:30 U.S. April 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