Yesterday the USDJPY reached 143.1 yen around GMT 11:00, but most U.S. economic indicators, including the April ADP employment statistics, showed poor results, bringing it back to the mid 142-yen range.

Subsequently, buybacks entered the market and the pair reached a high of 143.19 yen around GMT 20:30. Trading for the day closed at 143.04 yen.

Today the USDJPY weakened after the Bank of Japan maintained its interest rate and reports that the Outlook Report would downgrade GDP and price forecasts, reaching a high of 144.02 yen around GMT 05:00.

Looking at the 1-hour chart of the USDJPY chart (as of GMT 05:00 on May 1), the width of the Bollinger Bands was expanding and showing an upward trend. While there could be a downward adjustment returning to within the bands, the upward 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 12:30 U.S. Initial jobless claims for the previous week
• GMT 12:30 U.S. Continuing jobless claims for the previous week
• GMT 13:45 U.S. April Manufacturing Purchasing Managers Index
• GMT 14:00 U.S. April ISM Manufacturing PMI