Yesterday the USDJPY saw significant swings in both directions but ended the day largely unchanged. After reaching a high of 158.60 yen around GMT 07:00, the pair reversed course and fell to a low of 157.46 yen around GMT 13:30, with trading for the day closed at 158.13 yen.

Today the USDJPY touched a high of 158.28 yen shortly after GMT 00:00 but failed to extend gains, dropping to a low of 157.85 yen around GMT 01:30. As of GMT 04:30 it is trading in the 158-yen range. With tomorrow's Bank of Japan monetary policy meeting on the horizon, trading activity remains subdued.

Looking at the 1-hour chart of the USDJPY (as of GMT 04:40 on January 21), the pair continues to trade without clear direction, and the middle Bollinger Band shows little slope. A break above 158.60 yen or below 157.46 yen would signal an opportunity to follow the emerging trend.

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

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