Yesterday the USDJPY saw the dollar bought back as tensions between the U.S. and Europe eased, reaching a high of 158.89 yen shortly after GMT 07:00. The pair then declined on wariness of intervention by Japanese authorities and uncertainty over U.S. foreign policy, with trading for the day closed at 158.36 yen.

Today the USDJPY initially saw stronger yen selling after the BOJ's monetary policy meeting resulted in rates being held steady, reaching a high of 158.74 yen shortly after GMT 03:00. As of GMT 04:00, the pair is trading in the 158.5-yen range.

Looking at the 1-hour chart of the USDJPY (as of GMT 04:50 on January 23), the pair has pulled back after reaching +1 standard deviation. If it breaks below 158.23 yen, a shift to a bearish outlook may be warranted, though the market currently lacks clear direction.

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

The main economic indicators for today are as follows:

• GMT 14:45 U.S. January Manufacturing Purchasing Managers Index (PMI)
• GMT 14:45 U.S. January Services Purchasing Managers Index (PMI)
• GMT 14:45 U.S. January Composite Purchasing Managers Index (PMI)
• GMT 15:00 U.S. November Leading Index