Yesterday (Monday) the USDJPY gapped up at the open, and shortly after GMT 23:00 (i.e. on Sunday in the GMT time zone) it hit a high of 158.42. It subsequently fell to close the initial gap. Some time after GMT 16:00 on July 15, the market reached a low of 157.15.

It was a day on which the aftermath of the plunge in the price that followed last Thursday's intervention by the Japanese currency authorities was still being felt.

After marking a low shortly before GMT 16:00 the USDJPY rebounded, and that upward trend continued in today's Tokyo session.

Looking at the 1-hour chart of the USDJPY (as GMT 05:00 on July 16), the Bollinger Bands have expanded and the price is trading in the area of the +2 standard deviation. Volatility is on a rising trend and it appears as if there is some upward momentum to the market.

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

Today's main economic indicators are as follows.

• GMT 12:30 U.S. June Retail sales (MoM)
• GMT 12:30 U.S. June Retail sales excluding autos (MoM)