On Friday of last week the USDJPY rebounded after dollar selling triggered by FRB Governor Christopher Waller's comments supporting rate cuts in July, reaching a high of 148.88 shortly after GMT 07:30. However, the upside proved heavy and the price turned lower, hitting a low of 148.18 around GMT 14:00 before recovering to 148.77 where trading closed for the week.

Today the USDJPY gapped down at the open to 148.19 yen. The price reached a high of 148.66 directly after the opening but the recovery was weak, and as of GMT 05:00 it is trading weakly in the lower 148-yen range.

Looking at the 1-hour chart of the USDJPY (as of GMT 05:00 on July 21), it is difficult to determine a clear direction, but selling pressure is somewhat dominant with the pair trading below the middle line. If the pair breaks below the -2 standard deviations level and continues declining, adopting a short-term bearish stance could prove effective.

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

The main economic indicators for today are as follows:

• GMT 14:00 U.S. June Leading Index