On Friday of last week the USDJPY saw both yen and dollar bought simultaneously as risk aversion accelerated following reports that Israel had taken military action against Iran. After hitting a low of 142.79 yen around GMT 00:00, the price rebounded and reached a high of 144.48 around GMT 13:00, with trading for the day closing at 144.06 yen.

Today the USDJPY started with a gap up following the Middle East situation over the weekend. It reached a high of 144.75 yen around GMT 23:00 (on June 15) before declining and hitting a low of 143.90 yen around GMT 01:00. As of GMT 05:00, it is trading in the lower 144-yen range.

Looking at the 1-hour chart of the USDJPY (as of GMT 04:50 on June 16), it has rebounded after falling below 143 yen and is trading above the middle line while forming a dip If the price breaks above the recent high of 144.75 yen, the next target would likely be 145.50 yen.

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

The main economic indicators for today are as follows:

• GMT 12:30 U.S. June New York Empire State Manufacturing Index