Yesterday the USDJPY moved sideways for a while after hitting a low of 141.68 shortly after GMT 06:00, formed a triple bottom, then rebounded by 2.5 yen to close at 144.17 yen.

Up to yesterday the USDJPY had formed five consecutive bear bars. In slightly more than a month the market has fallen 20 yen from the 161.95 reached on July 3.

Today the USDJPY inherited the rebound that had begun in the second half of yesterday's session, returning to 146.37 a little while after GMT 00:00. It may be that this rise in the price was a response to the news that tripartite meetings will be held between MOF, FSA, and BOJ.

Looking at the 1-hour chart of the USDJPY (as of GMT 04:55 on August 6), the price bottomed where it significantly overshot the -2 standard deviation of the Bollinger Band on the downside, and began rising again after breaking up through the +1 standard deviation.

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

Today's main economic indicators are as follows.

• GMT 12:30 U.S. June Trade balance