Yesterday the USDJPY showed a firm trend from the opening low of 142.38 yen, reaching the 143-yen range around GMT 22:00 (on May 6) and continued to trade range-bound.

At the U.S. Federal Open Market Committee (FOMC) starting at GMT 18:00, there was no interest rate cut, and Chairman Jerome Powell indicated a reluctance to rush into rate cuts. Shortly after GMT 20:00, the USDJPY reached a high of 144.0 yen, and trading for the day closed at this high.

Today the USDJPY has been trading weakly following yesterday's rise. The British pound gained following reports that a trade agreement between the U.S. and the United Kingdom is scheduled to be announced tonight, pushing down the dollar, and shortly after GMT 02:30, it reached a low of 143.44 yen.

Looking at the 1-hour chart of the USDJPY (as of GMT 04:00 on May 8), the middle line is trending upward, suggesting the market is paying attention to yesterday's high of 144.0 yen. If it clearly breaks above this level, the upward trend is likely to resume.

(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