Yesterday the USDJPY opened with an upward gap from 151.16, and traded sideways in the upper 151-yen range throughout the Tokyo session. Around GMT 7:00, it rose into the 152-yen range, reaching a high of 152.44 around GMT 8:30, and trading for the day closed at 152.26.

Today the USDJPY traded firmly from shortly after the opening, reaching a high of 152.61 around GMT 0:30, but reports that China would impose sanctions on five U.S.-related companies triggered risk-averse yen buying, and the pair hit a low of 151.75 shortly after GMT 4:00.

Looking at the 1-hour chart of the USDJPY (as of GMT 4:30 on October 14), it has plunged sharply from the +2 standard deviation level and is threatening to break below the previous day's low. If it breaks below 151.72, the next target is likely to be 151.62 from the start of the week.

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

The main economic indicators for today are as follows:

• GMT 16:20 U.S. Statements from FRB Chairman Jerome Powell