On Friday of last week the USDJPY reached a high of 150.91 yen shortly after GMT 01:30, then moved somewhat softly until New York trading hours.

The July nonfarm payrolls data released at GMT 12:30 showed a significant deterioration to 73,000 versus expectations of 104,000, triggering concentrated dollar selling and a sharp decline. Around GMT 20:30, it hit a low of 147.29 yen and trading for the week closed at 147.36 yen.

Today the USDJPY reached a high of 147.90 yen around GMT 01:30, but failed to extend into the 148-yen range, and as of GMT 05:00 is moving somewhat softly in the upper 147-yen range.

Looking at the 1-hour chart of the USDJPY (as of August 4 GMT 05:00), while the downward pressure has paused, the trend has significantly changed. In the near term, selling on rallies appears to be an effective strategy. If there's a clear break above 148 yen, it might be better to wait and see

(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 Factory Orders