Yesterday the USDJPY hit a low of 147.08 yen shortly after GMT 22:00 (on August 17), then consolidated in the lower 147-yen range. After entering New York trading hours, the price moved to higher levels but lacked strong directional momentum, reaching a high of 147.98 around GMT 15:00. Trading for the day closed at 147.87 yen.

Today the USDJPY saw dollar buying after rating agency S&P maintained the U.S. Treasury rating at AA+, reaching a high of 148.11 yen around GMT 01:30 before quickly pulling back. As of GMT 05:00 it is showing small moves in the upper 147-yen range.

Looking at the 1-hour chart of the USDJPY (as of GMT 05:00 on August 19), the pattern of consolidation followed by upward moves continues, with the middle line trending upward. This appears to be an effective situation to wait with a bullish perspective while properly setting stop losses.

(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 Housing starts
• GMT 12:30 U.S. July Building permits