Yesterday the USDJPY saw yen buying driven by expectations of a December rate hike by the Bank of Japan, reaching a low of 155.65 yen at around GMT 02:30. It rebounded from there and hit a high of 156.73 yen shortly after GMT 14:00, but failed to reach 157 yen, and trading for the day closed at 156.45 yen.

Today the USDJPY saw intensified yen buying driven by expectations of a narrowing U.S.-Japan interest rate differential, reaching a low of 155.72 yen at around GMT 01:30, but rebounded following dovish comments from Bank of Japan Policy Board member Noguchi, rising to around 156.18 yen. As of GMT 05:00, it has once again fallen below 156 yen and continues to trade weakly.

Looking at the 1-hour chart of the USDJPY (as of GMT 05:10 on November 27), the pair continues to decline without breaking above recent highs. If it clearly breaks below 155.65 yen, the next target is likely to be around 155.0 yen.

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

Today, U.S. markets are closed, and no closely watched economic indicators are scheduled for release.