On Friday of last week the USDJPY saw the Tokyo metropolitan area Consumer Price Index (CPI) released at GMT 23:30 (on December 25) show signs of slowing, which dampened expectations for additional rate hikes. From a low of 155.75 yen reached just before the data release, the pair climbed to 156.49 yen shortly after GMT 00:30, held firm, and reached 156.73 yen around GMT 17:30, with trading closed at 156.56 yen for the week.

Today the USDJPY tilted toward yen buying following hawkish Bank of Japan opinions stating that "further adjustment of the degree of monetary accommodation will be necessary," hitting a low of 156.05 yen around GMT 00:00. As of GMT 04:30, the pair is trading weakly in the lower 156-yen range.

Looking at the 1-hour chart of the USDJPY (as of GMT 04:30 on December 29), the market is in a phase with no clear direction despite fluctuations in both directions. A break below 156.05 yen could trigger further downside targeting 155.5 yen.

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

• GMT 15:00 U.S. November Pending Home Sales