Yesterday the USDJPY hit a low of 157.42 yen shortly after GMT 01:00, halting the yen's appreciation, and from there the pair traded firmly. Risk-off sentiment from Trump tariff concerns was offset by yen-weakness expectations following Prime Minister Takaichi's formal announcement of a snap general election. While consolidating, the pair reached a high of 158.16 yen around GMT 09:30, and trading for the day closed at 158.05 yen.

Today the USDJPY moved without clear direction, hitting a high of 158.28 yen around GMT 00:00 before quickly pulling back to a low of 157.96 yen around GMT 01:00. As of GMT 05:00, the pair is trading near the 158.0-yen range.

Looking at the 1-hour chart of the USDJPY (as of GMT 05:20 on January 20), the middle line has flattened, making it difficult to identify a directional trend on this timeframe. A break above 158.28 yen could be the trigger for shifting to a bullish outlook.

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

Today, no closely watched economic indicators are scheduled for release.