Yesterday the USDJPY reached a high of 154.14 yen shortly after GMT 00:00, but subsequently trended lower.

U.S. long-term interest rates declined on concerns about a slowing U.S. labor market and rising expectations for additional Fed rate cuts, with the pair reaching a low of 152.83 yen shortly after GMT 17:00. The decline halted there, and trading for the day closed at 153.06 yen.

Today the USDJPY hit a low of 152.82 at around GMT 23:30 (on November 6) before rebounding, and reached a high of 153.30 at around GMT 01:00. As of GMT 05:00, it is trading in the lower 153-yen range.

Looking at the 1-hour chart of the USDJPY (as of GMT 05:10 on November 7), the decline is intensifying before completing the rebound, with the middle line trending downward. A break below 152.82 would likely lead to further downside momentum.

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

The main economic indicators for today are as follows:

• GMT 15:00 U.S. November Michigan Consumer Sentiment, preliminary