Yesterday the USDJPY reversed sharply from the rapid gains seen late last week and traded softly. With growing caution over potential currency intervention by Japanese authorities, the pair hit a low of 156.70 yen shortly after GMT 14:30 and trading for the day closed at 157.03 yen.

Today the USDJPY has continued the previous day's dollar-selling and yen-buying momentum. Comments from Finance Minister Katayama warning that authorities would "take appropriate measures against excessive currency fluctuations" added to yen-supportive sentiment, pushing the pair to a low of 155.96 yen shortly after GMT 04:00.

Looking at the 1-hour chart of the USDJPY (as of GMT 04:20 on December 23), downward momentum has intensified since the pair broke below 157 yen. A decisive break below 156 yen could extend the decline toward the 155.43 yen area.

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

The main economic indicators for today are as follows:

• GMT 13:30 U.S. October durable goods orders
• GMT 13:30 U.S. Real gross domestic product (GDP), Q3 (preliminary)
• GMT 13:30 U.S. PCE Price Index, Q3 (preliminary)
• GMT 13:30 U.S. Core PCE Price Index, Q3 (preliminary)