On Friday of last week the USDJPY hit a high of 153.27 shortly after GMT 00:00, but weakened as yen buying emerged following Komeito's dissolution of its coalition with the Liberal Democratic Party.

President Trump hinted at a significant tariff increase on Chinese products, prompting markets to become risk averse, and the USDJPY hit a low of 151.15 just before the close, plunging more than 2 yen as trading for the week closed.

Markets at the start of the week gapped up at the open. Buybacks emerged from the previous day's decline, and the pair reached a high of 152.27 shortly after GMT 22:00 (on October 12), but has struggled to extend gains since then, with trading hovering near the 152-yen range as of GMT 04:30.

Looking at the 1-hour chart of the USDJPY (as of GMT 04:20 on October 13), after forming a long upper wick, the market lacks direction on this timeframe. If the downward gap is filled and the pair breaks below 151.15, downward momentum is likely to accelerate further.

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

Today the Japanese and U.S. markets are closed and no major economic indicators are scheduled for release.