Yesterday the USDJPY traded softly after hitting a high of 147.53 shortly after GMT 01:00. The August retail sales data released at GMT 12:30 showed strong results and triggered some buying, but the price hit a low of 146.27 shortly after GMT 17:00 and trading for the day closed at 146.46 yen.

Today the USDJPY touched a low of 146.21 shortly after GMT 00:00 before bouncing back and has been moving sideways in the mid-146-yen range. There's a wait-and-see mood ahead of the U.S. FOMC meeting where rate cuts are widely expected.

Looking at the 1-hour chart of the USDJPY (as of GMT 04:10 on September 17), the trend is downward on this timeframe. While currently in a range, a break below could accelerate the downward momentum.

(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 Housing starts
• GMT 12:30 U.S. August Building permits
• GMT 18:00 Announcement on interest rates after U.S. Federal Open Market Committee (FOMC) meeting
• GMT 18:30 U.S. Regular press conference with FRB Chairman Jerome Powell