Yesterday the USDJPY reached a high of 144.99 yen shortly after GMT 22:00, but then lost momentum. Shortly after GMT 01:00, the price was moving within the lower 144-yen range, but then declined further, reaching a low of 143.54 yen shortly after GMT 13:30.

The U.S. April ISM Non-Manufacturing Index was released shortly after GMT 14:00, showing good figures that prompted buying, but it subsequently fell back, and trading for the day closed at 143.68 yen.

Today the USDJPY reached a high of 144.27 yen shortly after GMT 01:30, but quickly reversed course and as of GMT 05:00, it is trending downward to around 143.7 yen.

Looking at the 1-hour chart of the USDJPY (as of GMT 05:00 on May 6), the band width has narrowed, indicating a movement close to consolidation. Due to strong selling pressure, the downward bias is apparent, and a break below yesterday's low seems likely.

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

The main economic indicators for today are as follows:

• U.S. Federal Open Market Committee (FOMC) Day 1
• GMT 12:30 U.S. March Trade balance