Yesterday the USDJPY dropped sharply around GMT 09:00 following reports of Bank of Japan rate hike speculation. After hitting a low of 151.01, it rebounded on reports of diminishing rate hike expectations and reached a high of 152.86 around GMT 13:00. Even the CPI announcement at GMT 13:30 didn't cause significant movement, and trading for the day closed at 152.43.

Today the USDJPY hit a high of 152.45 around GMT 23:00 (December 11), then trended downward, recording a low of 151.95 shortly after GMT 01:00. As of GMT 04:30, it is trading in the lower 152-yen range.

Looking at the 1-hour chart of the USDJPY (as of GMT 04:00 on December 12), the band width has narrowed and broken below the middle line. If it breaks below 152, it looks likely to aim lower.

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

Today's main economic indicators are as follows.

• GMT 13:30 U.S. November Producer Price Index
• GMT 13:30 U.S. Initial jobless claims for the previous week
• GMT 13:30 U.S. Continuing jobless claims for the previous week