On Friday of last week the USDJPY traded weakly during Tokyo hours, reaching a low of 144.92 yen shortly after GMT 07:00. However, buybacks entered after that, and it reached a high of 146.10 yen shortly after GMT 16:00. Subsequently, the price fell just before the market close, and trading for the week closed at 145.62 yen.

Today the USDJPY gapped down at the open. Dollar selling advanced due to Moody's downgrading of the U.S. credit rating over the weekend, reaching a low of 144.80 yen shortly after GMT 01:00. As of GMT 04:00, it is trading in the lower 145-yen range.

Looking at the 1-hour chart of the USDJPY (as of GMT 03:20 on May 19), the larger trend is downward, and selling on rebounds is dominant. If it clearly breaks below the recent low of 144.80 yen, the downward trend is likely to continue.

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

The main economic indicators for today are as follows:

• GMT 14:00 U.S. April Leading Index