Yesterday the USDJPY moved up and down without clear direction in the 147-yen range, reaching a high of 147.88 around GMT 09:00, but then turned lower.

During New York trading hours, dovish comments from Fed officials strengthened expectations for early rate cuts, leading to increased dollar selling. Shortly after GMT 18:30 the pair hit a low of 146.97 before rebounding, and trading for the day closed at 147.36 yen.

Today the USDJPY turned higher after hitting a low of 147.15 shortly after GMT 23:00 (on August 6), and as of GMT 04:00 is consolidating in the upper 147-yen range.

Looking at the 1-hour chart of the USDJPY (as of GMT 04:20 on August 7), it is fluctuating with a range at the 147-yen level, making it difficult to discern the direction. Based on the length of the upper wicks, selling pressure appears to have a slight edge, but it would be wise to wait for a clear break above recent highs or below recent lows.

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

The main economic indicators for today are as follows:

• GMT 12:30 U.S. Initial jobless claims for the previous week
• GMT 12:30 U.S. Continuing jobless claims for the previous week