Yesterday the USDJPY traded weakly after hitting a high of 147.77 shortly after the opening. The price hit a low of 147.23 around GMT 13:00, and trading for the day closed at 147.36.

Today yen buying is intensifying as Agriculture Minister Koizumi announced his candidacy for the LDP leadership race and reports of coordination with Finance Minister Kato have strengthened expectations for a rate hike before year-end. The price hit a high of 147.53 shortly after GMT 01:00 before falling back, then reached a low of 146.96 around GMT 05:00.

Looking at the 1-hour chart of the USDJPY (as of GMT 05:20 on September 16), the pair is on the verge of breaking substantially below September 11's low. If it clearly breaks below this level, the next target would likely be around 146.3 yen.

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

The main economic indicators for today are as follows:

• U.S. Federal Open Market Committee (FOMC) Day 1
• GMT 12:30 U.S. August Retail sales
• GMT 12:30 U.S. August Retail sales (excluding autos)
• GMT 13:15 U.S. August Industrial production
• GMT 14:00 U.S. September NAHB Housing Market Index