Yesterday the USDJPY remained firm after hitting a low of 154.41 yen shortly after GMT 00:00. The strong U.S. November NY Empire State Manufacturing Index released at 13:30 GMT pushed back December rate cut expectations. The pair hit a high of 155.30 after GMT 15:30 and trading for the day closed at 155.17.

Today the USDJPY hit a high of 155.37 around 00:00 GMT, but then lost momentum and was pushed down to 154.71 shortly after 04:00 GMT. As of GMT 05:00, it is trading in the lower 155-yen range.

Looking at the 1-hour chart of the USDJPY (as of 05:00 GMT on November 18), after hitting new highs, a correction occurred, but a long lower wick formed. As long as the pair holds above 153.61, which served as the starting point for the recent high, the upward trend appears likely to continue.

(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 NAHB Housing Market Index
• GMT 15:00 U.S. August Factory Orders
• GMT 21:00 U.S. September Total net TIC flows