Yesterday the USDJPY fluctuated between 143 and 146 yen in a kind of adjustment phase following the recent plunge. Although supposedly a range-bound market, volatility was extraordinarily high, resulting in nervous trading with significant moves in both directions.

Today the USDJPY recorded a long bull bar just past GMT 01:30, and shortly after GMT 04:30 it reached a high of 147.90.

This may have been driven by comments by Shinichi Uchida, the Deputy Governor of the Bank of Japan, who stated that the BOJ will not raise interest rates while the markets are unstable, adding that it will be necessary to maintain loose monetary policy at the current level for the time being.

Looking at the 1-hour chart of the USDJPY (as of GMT 04:50 on August 7), the price has broken above the +2 standard deviation of the Bollinger Bands, and the middle line is also trending upward.

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

No closely watched economic indicators or comments by influential individuals are scheduled for today.