Yesterday the USDJPY reached a high of 158.20 around GMT 00:00 before falling back, hitting a low of 157.51 around GMT 01:00. The pair later rebounded but remained capped near 158.20, and trading for the day closed at 158.06 yen.

Today the USDJPY saw accelerated yen selling after reports that Prime Minister Takaichi communicated her intention to dissolve the lower house and call a general election. Shortly after GMT 04:00, the pair hit a high of 158.91 yen, temporarily breaking above the January 2025 high. As of GMT 05:00, the pair is trading in the upper 158-yen range.

Looking at the 1-hour chart of the USDJPY (as of GMT 05:00 on January 13), the pair broke above the 2025 high of 158.87 yen and moved outside the Bollinger Band before being pushed back, but it continues to trade near the +2 standard deviation line. The upward trend appears likely to continue.

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

• GMT 13:30 U.S. December Consumer Price Index (CPI)
• GMT 13:30 U.S. December Consumer Price Index (Core CPI)
• GMT 15:00 U.S. October New home sales
• GMT 19:00 U.S. December Monthly Budget Statement