Yesterday the USDJPY traded weakly due to risk-averse dollar selling, with the decline stabilizing around the mid 143-yen range at around GMT 06:30. After that, the price hit a low of 143.28 yen shortly after GMT 17:00, and trading for the day closed at 143.66 yen.

Today the USDJPY hit 144.40 yen shortly after GMT 23:00 (on May 21) following reports that U.S. Treasury Secretary Scott Bessent and Finance Minister Katsunobu Kato did not discuss exchange rate levels, but subsequently fell back, hitting a low of 143.14 yen shortly after GMT 02:30.

Looking at the 1-hour chart of the USDJPY (as of GMT 05:00 on May 22), the downward trend continues and this is a phase where selling on rebounds is being considered. Unless the price clearly breaks above 144.40 yen, it seems appropriate to maintain a downward outlook.

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

The main economic indicators for today are as follows:

• GMT 13:45 U.S. May Manufacturing Purchasing Managers Index (PMI, preliminary)
• GMT 13:45 U.S. May Services Purchasing Managers Index (PMI, preliminary)
• GMT 13:45 U.S. May Composite Purchasing Managers Index (PMI, preliminary)