Yesterday the USDJPY began to rise shortly after GMT 00:00, and by GMT 04:30 or thereabouts it had reached the middle of the 149-yen range, but subsequently sold off.

The U.S. CPI figures that were announced at GMT 12:30 were slightly positive, but both initial jobless claims and continuing jobless claims deteriorated. Directly after the figures were announced the USDJPY made significant moves in both directions, hitting a high of 149.56 and a low of 148.23, but thereafter it traded without any clear direction and closed for the day at 148.55.

Today the USDJPY has drifted in a range-bound market in the 148-yen zone, with movement contained within the high and low of the previous day.

Looking at the 1-hour chart of the USDJPY (as of GMT 05:20 on October 11), the Bollinger Bands have tightened and the angle of the middle line is gradually becoming less steep.

Following on from yesterday's CPI, market participants will be paying attention to today's PPI.

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

Today's main economic indicators are as follows.

• GMT 12:30 U.S. September Producer Price Index (PPI, MoM/YoY)
• GMT 12:30 U.S. September Producer Price Index (core PPI excluding food and energy, MoM/YoY)
• GMT 14:00 U.S. October Michigan Consumer Sentiment, preliminary