[January 15] USDJPY continues to trade in range - will CPI data determine direction?

2025.01.15 [January 15] USDJPY continues to trade in range - will CPI data determine direction?

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Recap of previous trading day (January 14)

Yesterday the USDJPY made large swings following Bank of Japan Deputy Governor Himeno's comments at GMT 01:30, dropping to a low of 157.07, before rising and breaking above 158 around GMT 12:00.

The U.S. December PPI released at GMT 13:30 showed overall poor results, but market reaction was limited. The price reached a high of 158.19 shortly after GMT 17:30 and trading for the day closed at 157.96.

Recap of the Tokyo market and outlook going forward

Today the USDJPY reached a high of 158.08 around GMT 00:00 before declining, touching a low of 157.82 after GMT 01:30, and as of GMT 04:00 is trading in a range in the upper 157-yen level.

Looking at the 1-hour chart of the USDJPY (as of GMT 03:40 January 15), prices are ranging between around 157.0 and 158.2. One sensible approach might be to move in the direction in which the price breaks.