Yesterday the USDJPY reached a high of 148.16 shortly after GMT 02:00, then moved lower and hit a low of 147.08 around GMT 15:00. Trading for the day closed at 147.36 yen.

Today the USDJPY has been trending higher for the yen as U.S. Treasury Secretary Scott Bessent called for Fed rate cuts and commented on foreign central bank policies including Japan's, raising awareness of a narrowing U.S.-Japan interest rate differential. The price reached a low of 146.33 yen shortly after GMT 04:30.

Looking at the 1-hour chart of the USDJPY (as of GMT 05:20 on August 14), the middle line is trending downward. As long as the price doesn't break above 147.5 yen, selling on rallies appears to be an effective strategy.

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

The main economic indicators for today are as follows:

• GMT 12:30 U.S. July Producer Price Index (PPI)
• GMT 12:30 U.S. July Producer Price Index (core PPI excluding food and energy)
• GMT 12:30 U.S. Initial jobless claims for the previous week
• GMT 12:30 U.S. Continuing jobless claims for the previous week