Yesterday the USDJPY trended upward slowly during Tokyo trading hours and into the London session, but began to fall at around GMT 12:00 and hit a low of 156.58 shortly after GMT 12:30.

The U.S. Producer Price Index (PPI) that was announced yesterday fell short of forecasts overall. Initial U.S. jobless claims for the previous week also increased.

As expected, policy interest rates were left unchanged by the Bank of Japan's Monetary Policy Meeting at around GMT 03:30 today. It also announced a policy of reducing purchases of JGBs. As there was no detail that would lead to yen purchases, the USDJPY rose after the announcement. Attention will now be focused on BOJ Governor Kazuo Ueda's press conference, scheduled for GMT 06:30.

Looking at the 1-hour chart of the USDJPY (as of GMT 03:15 on June 14), one can see that the Bollinger Bands widened after the Bank of Japan announcement.

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

Today's main economic indicators are as follows.

• GMT 14:00 U.S. June Michigan Consumer Sentiment, preliminary