On Friday of last week the USDJPY hit a low of 154.34 yen shortly after GMT 07:30, then rebounded and climbed to 155.49 yen around GMT 15:00. The rally stalled just short of 155.50 yen, and trading for the day closed at 155.32 yen.

Today the USDJPY came under selling pressure as markets positioned for rate cuts ahead of the U.S. FOMC meeting, while yen buying picked up on growing expectations of a Bank of Japan rate hike, pushing the pair to a low of 154.90 yen around GMT 02:00. As of GMT 04:00, it is trading in the lower 155-yen range.

Looking at the 1-hour chart of the USDJPY (as of GMT 04:20 on December 8), the decline has paused and the price briefly touched the upper Bollinger Band. With higher lows forming, if the price breaks above the resistance line near 155.50 yen, it may be reasonable to shift to a bullish outlook.

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

Today, no closely watched economic indicators are scheduled for release.