Yesterday the USDJPY hit a low of 145.85 around GMT 01:30, then rebounded as dollar buying resumed with the downside supported by yen weakness. The pair moved steadily higher, reaching 147.02 shortly after GMT 20:30, and trading for the day closed at this high.

Today the USDJPY reached a high of 147.49 around GMT 02:30 as expectations for additional Bank of Japan rate hikes receded following the release of July Tokyo area consumer price index data at GMT 23:30 (on July 24), which showed slowing inflation growth. As of GMT 04:30, the upward momentum has paused and the pair is consolidating near 147.2 yen.

Looking at the 1-hour chart of the USDJPY (as of GMT 04:40 on July 25), the pair rebounded after reaching the lower Bollinger Band limit and continues to rise. The 147.5-yen level appears to be the key threshold that will determine whether the upward momentum continues.

(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 durable goods orders
• GMT 12:30 U.S. June durable goods orders excluding transportation