Yesterday the USDJPY opened with a downward gap and reached a high of 148.66 around GMT 23:30 (on July 20), but yen buying accelerated after the ruling party lost its majority in the upper house election, though Prime Minister Ishiba indicated his intention to continue in office.

The price bottomed out at 147.08 yen shortly after GMT 16:00, and trading for the day closed at 147.34 yen.

Today the previous day's decline paused, with some dollar buying returning, reaching a high of 147.71 shortly after GMT 00:00. As of GMT 04:00, it is trading in the upper 147-yen range.

Looking at the 1-hour chart of the USDJPY (as of GMT 04:30 on July 22), the middle line is trending downward, but there is resistance around 147.72 yen, setting up for a potential break. A rise above this level would likely see a return toward the 148-yen range.

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

The main economic indicators for today are as follows:

• GMT 12:30 U.S. Statements from FRB Chairman Jerome Powell
• GMT 14:00 U.S. July Richmond Fed manufacturing index