Yesterday the USDJPY reached a high of 154.48 yen shortly after GMT 01:15 before declining. The decline paused after hitting a low of 153.31 yen shortly after GMT 10:00, but the recovery was weak, and trading for the day closed at 153.66 yen.

Today the USDJPY hit a low of 152.95 yen shortly after GMT 01:30 as risk-averse yen buying emerged in response to the sharp drop in the Nikkei stock average. As of GMT 04:00, the price has recovered to the 153.5-yen range.

Looking at the 1-hour chart of the USDJPY (as of GMT 04:10 on November 5), the trend is downward on this timeframe. A bearish stance appears to be appropriate, but if the price clearly breaks above the 153.75 yen level, a return to an uptrend is possible.

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

The main economic indicators for today are as follows:

• GMT 13:15 U.S. October ADP employment change
• GMT 14:45 U.S. October Services Purchasing Managers Index (PMI)
• GMT 14:45 U.S. October Composite Purchasing Managers Index (PMI)
• GMT 15:00 U.S. October ISM Services PMI