Yesterday the USDJPY showed a firm trend with a low of 155.40 shortly after the opening, and hit a high of 156.17 around GMT 15:00. However, the pair failed to extend its gains and reversed course, with trading for the day closed at 155.86 yen.

Today the USDJPY touched a high of 155.90 yen around GMT 23:00 (on December 2), then traded weakly, and as of GMT 05:00 is trading in the upper 155-yen range.

Looking at the 1-hour chart of the USDJPY (as of GMT 05:00 on December 3), the pair has turned lower after failing to break above recent highs, suggesting selling on rallies is dominant. Unless the price breaks above 156 yen again, a downward outlook seems appropriate.

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

The main economic indicators for today are as follows:

• GMT 13:15 U.S. November ADP employment change
• GMT 14:15 U.S. September Industrial production
• GMT 14:45 U.S. November Services Purchasing Managers Index (PMI, revised)
• GMT 14:45 U.S. November Composite Purchasing Managers Index (PMI, revised)
• GMT 15:00 U.S. November ISM Services PMI