Yesterday the USDJPY plunged to 145.48 around GMT 18:00 as the FOMC delivered the expected rate cut and signaled additional cuts ahead, but buying returned after Fed Chair Powell's press conference indicated the cut was for risk management purposes. Trading for the day closed at 146.95 yen.

Today the USDJPY continues yesterday's buying momentum, hitting a high of 147.17 around GMT 04:30 and trading somewhat firmly in the lower 147-yen range.

The 1-hour chart of the USDJPY (as of GMT 04:30 on September 18) shows a rebound with a long downward wick. A break above the recent high of 147.26 yen could see a return to the trading range that has persisted since July.

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

The main economic indicators for today are as follows:

• 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 12:30 U.S. September Philadelphia Fed Manufacturing Index
• GMT 14:00 U.S. August Leading Index
• GMT 20:00 U.S. July Total net TIC flows