Yesterday the USDJPY remained in a narrow trading range around the 147-yen level, despite expanding its daily range. The pair reached a high of 147.92 around GMT 16:30 but the rally stalled there. Dollar selling pressure pushed the pair to a low of 147.46 shortly after GMT 18:00.

Fed Chair Jerome Powell's speech showed a cautious stance toward additional rate cuts, which helped stem the decline, but the recovery was limited, and trading for the day closed at 147.59 yen.

Today the USDJPY hit a low of 147.51 at around GMT 00:00 before rebounding, and reached a high of 147.96 at around GMT 04:30. As of GMT 05:00, the pair is consolidating just below the 148 level.

Looking at the 1-hour chart of the USDJPY (as of GMT 05:00 on September 24), selling pressure is building near the 148 level, and a substantial break above this level could trigger upward movement. If the pair gets pushed back down, it would create an opportunity for buying on dips.

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

The main economic indicators for today are as follows:

• GMT 14:00 U.S. August New home sales