Yesterday the USDJPY reached a high of 152.61 yen shortly after GMT 00:30, but concerns over a prolonged U.S. government shutdown and uncertainty around U.S.-China relations fueled continued risk-averse yen buying, resulting in weak trading. The pair hit a low of 151.60 yen shortly after GMT 19:30.

Today yen buying accelerated as reports emerged that President Trump is considering imposing sanctions on Spain, in addition to the ongoing U.S.-China retaliatory measures that have continued since last Friday. The price hit a low of 151.00 around GMT 03:00.

Looking at the 1-hour chart of the USDJPY (as of GMT 04:20 on October 15), the pair has broken below the recent low of 151.15 yen, with a continued pattern of lower highs and lower lows. If the pair breaks below the 151-yen range, the next target is likely to be around 150.0 yen.

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

The main economic indicators for today are as follows:

• GMT 12:30 U.S. October New York Empire State Manufacturing Index
• GMT 18:00 U.S. Regional FRB economic reports (Beige Book)