Yesterday the USDJPY reached a high of 156.79 shortly after GMT 00:30, then turned toward dollar selling, falling to a low of 156.16 around GMT 08:00. The pair subsequently rose again as euro selling and dollar buying flowed in following weak German December CPI data. Trading for the day closed at 156.60 yen.

Today the USDJPY hit a high of 156.80 around GMT 00:00 but failed to extend gains, dropping to a low of 156.50 around GMT 03:30. As of GMT 04:30, the pair is drifting without clear direction in the upper 156-yen range.

Looking at the 1-hour chart of the USDJPY (as of GMT 04:20 on January 7), the decline paused at 156.11, and on this timeframe the pair is rising while forming higher lows. If it breaks above 157.0 again, it would seem appropriate to maintain an upward outlook,

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

• GMT 13:15 U.S. December ADP employment change
• GMT 15:00 U.S. December ISM Services PMI
• GMT 15:00 U.S. November JOLTS Job Openings
• GMT 15:00 U.S. October Factory Orders