Yesterday the USDJPY rose to 156.16 yen shortly after GMT 06:00, but overall traded softly. Dollar selling and yen buying had been gaining momentum on expectations of a narrowing U.S.-Japan interest rate differential, but following weak U.S. initial jobless claims data released at GMT 13:30, the pair fell to a low of 154.94 yen shortly after GMT 14:30. Trading for the day closed at 155.58 yen.

Today the USDJPY rebounded from the previous day's decline and has been trading firmly. The pair touched a high of 155.77 yen around GMT 01:00 before pulling back, but as of GMT 05:00 it has returned to the 155.7-yen range.

Looking at the 1-hour chart of the USDJPY (as of GMT 05:10 on December 12), the decline has paused, but it is difficult to see a clear direction. As long as the price doesn't break above 156.16 yen, selling on rallies appears to be an effective strategy.

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

There are no closely watched economic indicators today.