Yesterday the USDJPY started with a gap down, reached a high of 155.34 around GMT 00:00, but traded weakly thereafter. The decline paused after reaching a low of 155.30 around GMT 11:00, and while the upside remained capped, it gradually raised its lows and trading for the day closed at 154.15.

Today the USDJPY consolidated in the lower 154-yen range directly after the open, but rebounded after hitting a low of 154.08 yen shortly after GMT 02:30, and as of GMT 05:00 is trading relatively firmly in the 154.6-yen range.

Looking at the 1-hour chart of the USDJPY (as of January 27, GMT 05:00), the sharp decline has paused and the middle line is starting to turn upward. In the short term, the level around 155.61 yen, which was the level before the decline, serves as a target for the upside, and there is a possibility the market could test this level.

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

The main economic indicators for today are as follows:

• U.S. Federal Open Market Committee (FOMC) Day 1
• GMT 14:00 U.S. November Case-Shiller home price index
• GMT 15:00 U.S. January Richmond Fed manufacturing index
• GMT 15:00 U.S. January Consumer Confidence Index