Yesterday the USDJPY trended downward from a high of 147.53 yen reached shortly after GMT 21:30 (on September 8). Reports that the Bank of Japan is not ruling out the possibility of a rate hike within the year accelerated the USDJPY decline.

After hitting a low of 146.30 shortly after GMT 09:30, the pair found support and trading for the day closed at 147.71.

Today the USDJPY reached a high of 147.57 shortly after GMT 01:00, but has mostly traded sideways in the lower 147-yen range, showing no clear directional bias.

Looking at the 1-hour chart of the USDJPY (as of GMT 05:30 on September 10), the decline has paused and the pair has been recovering, but it is unable to extend gains and remains in a directionless phase. Unless it can break above 147.57 and extend higher, a downward outlook appears appropriate.

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

The main economic indicators for today are as follows:

• GMT 12:30 U.S. August Producer Price Index (PPI)
• GMT 12:30 U.S. August Producer Price Index (core PPI excluding food and energy)