Yesterday the USDJPY saw concentrated buying due to reports that the U.S. and China would significantly reduce reciprocal tariffs, surging from around GMT 07:00 and reaching a high of 148.65 yen shortly after GMT 18:00. The rise then stalled, and trading for the day closed at 148.45 yen.

Today the USDJPY is trading somewhat weakly as the previous day's rally pauses and some adjustment occurs, but it stopped declining around 147.73 yen and as of GMT 04:30 is consolidating in the upper 147-yen range.

Looking at the 1-hour chart of the USDJPY (as of GMT 04:30 on May 13), the bands that had been expanding are now contracting, and on this time frame the range is between 148.65 and 147.73 yen. It seems appropriate to wait for a solid break above 148.65 yen on the 1-hour chart before considering the upward trend to have resumed.

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

The main economic indicators for today are as follows:

• GMT 12:30 U.S. April Consumer Price Index (CPI)
• GMT 12:30 U.S. April Consumer Price Index (Core CPI)