Yesterday the USDJPY swung sharply within the 156-yen range. The pair reached a high of 156.80 around GMT 00:00 before pulling back, then touched a low of 156.29 around GMT 07:00 and rallied again.

U.S. economic data released that day came in mixed, prompting only a limited market reaction. The pair recovered to 156.80 shortly after GMT 16:00, and trading for the day closed at 156.74 yen.

Today the USDJPY climbed to 156.95 shortly after GMT 02:00 before retreating, pulling back to 156.63 around GMT 03:30. As of GMT 04:30, the pair is trading sideways in the upper 156-yen range.

Looking at the 1-hour chart of the USDJPY (as of GMT 04:20 on January 8), the pair has been forming higher lows as it advances, and the market is watching to see whether it can break above 157 yen. A bullish outlook appears justified as long as the pair stays above 156.30 yen.

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

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