On Friday of last week the USDJPY surged sharply as the yen weakened following dovish comments from BOJ Governor Kazuo Ueda after the Bank of Japan's monetary policy meeting, combined with a sense that all relevant factors had been priced in. Trading for the day closed at a high of 157.77 yen, reached shortly after GMT 21:30, ending the week at its peak.

Today the USDJPY is slightly weak as a correction to the sharp rally at the end of last week. The pair hit a low of 157.23 yen shortly after GMT 02:00 and is currently trading in the 157.3-yen range as of GMT 05:00.

Looking at the 1-hour chart of the USDJPY (as of GMT 05:20 on December 22), the Bollinger Bands are narrowing and upward momentum appears to be pausing. There appears to be support around 157.2 yen, and a break below this level could lead to a decline toward 157.0 yen.

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

Today, no highly influential economic indicators are scheduled for release.