Yesterday the USDJPY reached a high of 156.53 shortly after GMT 00:30, then fell to the lower 155-yen range following reports of expectations for an additional Bank of Japan rate hike, and subsequently traded in the upper 155-yen range.

Around GMT 15:00, Fed Governor Waller mentioned the possibility of rate cuts in the first half of the year, triggering selling in the market. The USDJPY hit a low of 155.08 at GMT 21:30 and closed at that level.

Today the USDJPY hit a low of 154.97 shortly after GMT 00:30, then reached a high of 155.49 around GMT 04:00, and continues to trade higher.

Looking at the 1-hour chart of the USDJPY (as of GMT 04:00 January 17), it briefly reached +1 standard deviation but is trending downward. If it breaks below 155 again, it appears 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. December Housing starts
• GMT 13:30 U.S. December Building permits
• GMT 14:15 U.S. December Industrial production
• GMT 21:00 U.S. November Total net TIC flows