Yesterday the USDJPY saw limited movement, trading mainly in the lower 147-yen range. The U.S. August PPI data released at GMT 12:30 came in below expectations, including the core index. Immediately after the data release, the pair hit a low of 147.10 before quickly rebounding to 147.64, though the reaction was limited. Trading for the day closed at 147.46 yen.

Today the USDJPY hit a low of 147.28 yen at GMT 23:30 (on September 10), and as of GMT 05:00, remains stuck in the lower 147-yen range.

Looking at the 1-hour chart of the USDJPY (as of GMT 05:10 on September 11), the Bollinger Band width has contracted and the middle line has become nearly horizontal. A wait-and-see approach appears best until movement begins.

(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 Consumer Price Index (CPI)
• GMT 12:30 U.S. August Consumer Price Index (Core CPI)
• GMT 12:30 U.S. Initial jobless claims for the previous week
• GMT 12:30 U.S. Continuing jobless claims for the previous week
• GMT 18:00 U.S. August Monthly Budget Statement