On Friday of last week the USDJPY saw the Bank of Japan decide to keep policy rates unchanged, but with two members advocating for rate hikes, yen buying emerged and the pair hit a low of 147.19 shortly after GMT 04:00.

However, as Governor Kazuo Ueda did not signal an October rate hike, dollar buying resumed, fully retracing the decline to reach a high of 148.28 shortly after GMT 12:30. Trading for the day closed at 147.89 yen.

Today the USDJPY moved firmly higher from the opening, reaching a high of 148.37 around GMT 03:00, and as of GMT 04:00 is trading near 148.3 yen.

Looking at the 1-hour chart of the USDJPY (as of GMT 04:00 on September 22), the previously horizontal middle line has turned upward and reached the upper Bollinger Band limit. While a correction appears likely, it seems appropriate to maintain an upward outlook in the short-term.

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

Today, no closely watched economic indicators are scheduled for release.