Yesterday the USDJPY saw yen buying and dollar selling dominate, hitting a low of 155.65 yen shortly after GMT 09:00. The pair recovered to the mid-156-yen range but faced resistance at higher levels, and trading for the day closed at 156.17 yen.

Today the USDJPY continues to see pre-Christmas position adjustments, with strong yen buying pressure. The pair reached a low of 155.55 yen shortly after GMT 02:00, but has since rebounded and is trading around 156.0 yen as of GMT 04:30.

Tomorrow, December 25, most FX brokers will be closed for trading. With reduced price movement and wider spreads, there's little reason to trade unless you have a specific opportunity in mind.

Looking at the 1-hour chart of the USDJPY (as of GMT 04:30 on December 24), the pair is declining while making lower highs, suggesting selling on rallies may be an effective strategy. If the pair breaks below its recent low, the next target is likely around 155.0 yen.

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

The main economic indicators for today are as follows:

• GMT 13:30 U.S. Initial jobless claims for the previous week
• GMT 13:30 U.S. Continuing jobless claims for the previous week