Yesterday the USDJPY showed resilient movement with ups and downs into New York hours, reaching a high of 148.51 shortly after GMT 12:00. However, the July Consumer Price Index (CPI) released at GMT 12:30 came in weaker than expected at 0.2% versus the forecasted 0.3%, triggering a sharp dollar selloff.

The price hit a low of 147.57 shortly after GMT 15:30, and trading for the day closed at 147.83.

Today the USDJPY hit a low of 147.70 around GMT 00:00, then reversed higher and reached a high of 148.16 shortly after GMT 02:00. However, upside momentum has since been held down, and as of GMT 05:00 the pair is trading in the upper 147-yen range.

Looking at the 1-hour chart of the USDJPY (as of GMT 05:20 on August 13), the pair has failed to fully recover after its decline, with the middle line turning downward again. If the pair can break back above 148.20 yen, we could return to a bullish outlook, but currently this looks like a good setup for selling on rallies.

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

Today, no closely watched economic indicators are scheduled for release.