Yesterday the USDJPY saw accelerated yen selling after Prime Minister Takaichi signaled her intention to dissolve the lower house and call a general election. The release of weaker-than-expected U.S. CPI core data at GMT 13:30 briefly pushed the pair back toward yen strength, but it reached a high of 159.19 shortly after GMT 15:00, and trading for the day closed at 159.09 yen.

Looking at the 1-hour chart of the USDJPY (as of GMT 04:30 on January 14), the pair has pulled back inside the Bollinger Bands after exceeding the +2 standard deviation line, but continues to trade above the middle line. The bullish momentum looks set to continue.

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

• GMT 13:30 U.S. November Producer Price Index (PPI)
• GMT 13:30 U.S. November Producer Price Index (core PPI excluding food and energy)
• GMT 13:30 U.S. November Retail sales
• GMT 13:30 U.S. November Retail sales (excluding autos)
• GMT 13:30 U.S. Current account Q3
• GMT 15:00 U.S. December Existing home sales
• GMT 19:00 U.S. Regional FRB economic reports (Beige Book)