Yesterday the USDJPY saw sharp dollar selling after President Trump indicated his intention to immediately dismiss Fed Governor Lisa Cook. Shortly after GMT 00:30, it hit a low of 146.98, but the dollar was bought back after reports emerged denying the dismissal, reaching a high of 147.90 around GMT 07:00.

It then moved lower and trading for the day closed at 147.36 yen.

Today the USDJPY has been moving solidly higher from the opening and is currently trading in the 147.9-yen range as of GMT 04:30.

Looking at the 1-hour chart of the USDJPY (as of GMT 04:50 on August 27), the market is at a critical juncture of whether it can break above 148 yen, a level that it has pushed back from several times. If the price clearly breaks above this level, the next upside target would likely be around 148.7 yen.

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

Today, no highly influential economic indicators are scheduled for release.