Yesterday the USDJPY reached a high of 154.46 shortly after GMT 23:00 (on February 4), then declined while forming a range, and hit the mid 152-yen level around GMT 10:30.

Subsequently, after the release of January's ISM Services PMI at GMT 15:00, which showed poor results, the market reacted with selling. The price hit a low of 152.11 around GMT 16:00, and trading for the day closed at 152.60.

Today the USDJPY touched a high of 152.75 around GMT 23:30 (on February 5), then turned downward, reaching a low of 151.81 around GMT 01:30. Finance Minister Katsunobu Kato's comments and Bank of Japan board member Naoki Tamura's hawkish stance are strengthening expectations for a Bank of Japan rate hike.

Looking at the 1-hour chart of the USDJPY (as of GMT 03:30 on February 6), the downward bandwalk continues, and it appears poised to test the critical level of 150. The downward trend appears likely to continue.

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

The main economic indicators for today are as follows:

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