Yesterday the USDJPY hit a low of 156.45 around GMT 08:00 before reversing course. U.S. economic data released at GMT 13:30 showed the trade deficit coming in well below expectations, triggering dollar buying that pushed the pair to a high of 157.07 shortly after GMT 14:00. Trading for the day closed at 156.85 yen.

Today the USDJPY has continued to see yen selling on the back of strength in Japanese equities, trading firmly from the market open. The pair reached a high of 157.31 around GMT 05:00 and is now pushing higher.

Looking at the 1-hour chart of the USDJPY (as of GMT 05:20 on January 9), the pair has pulled back, resumed its climb, and broken above 157 yen. It has now reached the January 5 high of 157.29 yen, with the next target appearing to be around 157.5 yen.

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

• GMT 13:30 U.S. December Nonfarm payrolls
• GMT 13:30 U.S. December Unemployment rate
• GMT 13:30 U.S. December Average hourly earnings
• GMT 13:30 U.S. October Housing starts
• GMT 13:30 U.S. October Building permits
• GMT 15:00 U.S. January Michigan Consumer Sentiment, preliminary