On Friday of last week, trading in the USDJPY was confined to a range between the upper half of the 144-yen zone and the lower half of the 145-yen zone until about GMT 08:00, but it broke above the high of the day at around GMT 10:00 and started to trend upward.

Personal consumption expenditures for the U.S. in July were announced at GMT 12:30, with the deflator coming in as forecast at a year-on-year change of 2.5%. The core deflator was 2.6% year on year, a deterioration from the forecast of 2.7%.

As a result the dollar strengthened progressively so that by shortly after GMT 16:30 it had reached a high of 146.24 yen. It subsequently remained above the 146-yen level, closing for the day at 146.13. Due in part to traders adjusting their positions ahead of the three-day weekend arising from the U.S. market holiday on Monday, the dollar was stronger across the board.

Today the USDJPY sold off after hitting a high of 146.59 at GMT 23:00, falling to a low of 145.82 not long after GMT 04:00.

Looking at the 1-hour chart of the USDJPY (as of GMT 04:50 on September 2), although the price has broken out above the sideways market that had continued for several days, it seems to have entered a phase of adjustment, as shown by the price falling below the middle line of the Bollinger Band.

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

There are no closely watched economic indicators today.