Yesterday the USDJPY reached a high of 157.96 shortly after GMT 00:00, then continued to decline with fluctuations. After hitting a low of 156.91 around GMT 13:00, it reversed course upward but was pushed back at around 157.8 yen, and trading for the day closed at 157.46.

As a so-called "5/10 day" (a date ending in "5" or on a multiple of "10" on which Japanese companies often settle foreign exchange payments), today the USDJPY experienced volatility when Deputy Governor of the Bank of Japan Himino mentioned potential rate hikes this year at GMT 01:30, hitting a high of 158.03 and a low of 156.99, but has since been trading without clear direction in the upper 157-yen range.

Looking at the 1-hour chart of the USDJPY (as of GMT 04:30), it is range-bound between 157 and 158 yen. It seems that the best strategy here would be to move in the direction in which the price breaks.

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

Today's main economic indicators are as follows.

• GMT 13:30 U.S. December Producer Price Index (PPI)
• GMT 13:30 U.S. December Producer Price Index (core PPI excluding food and energy)
• GMT 19:00 U.S. December Monthly Budget Statement