Yesterday the USDJPY briefly dipped on yen strength during the Tokyo session after the Bank of Japan expressed hawkish-leaning views, but year-end low trading volume kept market movement largely confined to a narrow range in the lower 156-yen range. The pair briefly broke below 156 yen, but trading for the day closed at 156.02 yen.

Today the USDJPY is seeing low trading volume conditions, reaching a high of 156.33 yen shortly after GMT 02:00, though upside momentum remains limited, with the pair trading in the lower 156-yen range as of GMT 05:00.

Looking at the 1-hour chart of the USDJPY (as of GMT 05:10 on December 30), the pair shows a gradual downtrend on this timeframe, but without any significant swings in either direction. If the pair breaks below 156 yen and continues to test lower levels, it may be worth shifting to a bearish outlook.

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

• GMT 14:00 U.S. October Case-Shiller home price index
• GMT 14:45 U.S. December Chicago Purchasing Managers Index
• GMT 19:00 U.S. Federal Open Market Committee (FOMC) Meeting Minutes

Updates to this report will be suspended from December 31 through January 4. The next edition is scheduled for release on January 5.