On Friday of last week the USDJPY reached a high of 148.51 shortly after GMT 22:30 (on September 4), then moved sideways in the low 148-yen range.

The August nonfarm payrolls released at GMT 12:30 came in at 22,000 versus expectations of 75,000, sparking heavy dollar selling across the market. The pair hit a low of 146.81 shortly after GMT 15:30 before the decline paused, and trading for the day closed at 147.35 yen.

Over the weekend, reports emerged of Prime Minister Ishiba Shigeru's resignation, and concerns about fiscal deterioration caused the pair to gap higher at the week's open, starting in the 148.2-yen range. After hitting a high of 148.57 shortly after GMT 01:00, the pair has been trading without clear direction in the low 148-yen range.

Looking at the 1-hour chart of the USDJPY (as of GMT 05:20 on September 5), there has been a sharp decline followed by a sharp rally, but momentum couldn't be sustained and the pair has since pulled back. Unless new highs are established, it appears to be an effective situation for selling on rallies.

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

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