Yesterday the USDJPY saw dollar buybacks following last week's sharp decline, reaching a high of 148.08 yen around GMT 08:30, but then turned lower again from that point. It hit a low of 146.86 yen shortly after GMT 14:00 and trading for the day closed at 147.08 yen.

Today the USDJPY rebounded after hitting a low of 146.61 yen around GMT 00:00, but failed to extend gains beyond 147.26 yen reached around GMT 04:00, and as of GMT 05:00 is trading in the lower 147-yen range.

Looking at the 1-hour chart of the USDJPY (as of GMT 05:00 on August 5), after the sharp decline broke well below -2 standard deviations, signs of a bottom are emerging. The pair is currently moving back toward the middle line, but the Bollinger Bands maintain their downward trajectory, creating conditions where selling on rallies remains a focus.

(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 Trade balance
• GMT 13:45 U.S. July Services Purchasing Managers Index (PMI, revised)
• GMT 13:45 U.S. July Composite Purchasing Managers Index (PMI, revised)
• GMT 14:00 U.S. July ISM Manufacturing PMI