Yesterday the USDJPY declined after comments from the Bank of Japan Deputy Governor reduced expectations for interest rate hikes, hitting a low of 147.04 shortly after GMT 00:30, then moving steadily higher from there. The price rose to 148.94 shortly after GMT 12:30 but failed to reach 149 and pulled back. Trading for the day closed at 148.35 yen.

Today the USDJPY continued its yen-selling trend as three senior LDP officials indicated their intention to resign, raising expectations that the leadership race may be moved forward. The price hit a high of 148.92 around GMT 04:00, returning to the previous day's high range.

Looking at the 1-hour chart of the USDJPY (as of GMT 04:20 on September 3), the pullback has served as a buying opportunity, with the pair continuing to trade above the middle line. If it clearly breaks above 149 yen, the upward trend is likely to continue.

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

The main economic indicators for today are as follows:

• GMT 14:00 U.S. July JOLTS Job Openings
• GMT 14:00 U.S. June Factory Orders
• GMT 18:00 U.S. Regional FRB economic reports (Beige Book)