On Friday of last week the USDJPY came under pressure from repeated warnings against yen weakness throughout the week, trading softly amid wariness over potential currency intervention. The pair bottomed out at 157.82 around GMT 15:00, and trading for the day closed at 158.06 for the week.

Today the USDJPY extended its decline from the opening bell as risk-off sentiment intensified over trade friction concerns following U.S. President Trump's announcement of 10% tariffs on eight European countries.

The pair hit a low of 157.42 shortly after GMT 01:00, and as of GMT 04:00 is trading around 157.9 yen.

Looking at the 1-hour chart of the USDJPY (as of GMT 04:20 on January 19), the middle line is trending downward on this timeframe, suggesting that selling on rallies may be an effective strategy. If the pair breaks below 157.42 yen again, 157.0 yen could be the next target.

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

Today, U.S. markets are closed, and no closely watched economic indicators are scheduled for release.