Yesterday the USDJPY traded softer after reaching a high of 148.22 yen shortly after GMT 00:30, and with the help of weak September ADP employment statistics released at GMT 12:15, hit a low of 146.58 yen immediately following the announcement.

Although the pair recovered slightly after the strong September ISM Manufacturing PMI released at GMT 14:00, trading for the day closed at 147.06 yen.

Today the USDJPY is attempting to recover from yesterday's decline, but concerns about economic deterioration due to the U.S. government shutdown are weighing on the upside, leaving the pair directionless in the lower 147-yen range.

Looking at the 1-hour chart of the USDJPY (as of GMT 05:00 on October 2), the Bollinger Bands are repeatedly contracting and expanding, making direction unclear on this timeframe. Unless the pair clearly breaks above 148.2 yen, which marks the starting point of the recent low, it seems reasonable to maintain a downward outlook.

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

Today, no highly influential economic indicators are scheduled for release.