Yesterday the USDJPY recovered from the January 26 decline, reaching a high of 154.87 yen around GMT 08:30. However, it then dropped sharply to 153.18 yen shortly after GMT 09:00, before falling further to a low of 152.09 yen shortly after GMT 20:30. Trading for the day closed at that level.

Today the USDJPY saw dollar buying resume immediately after the open, reaching a high of 153.06 yen around GMT 01:00. However, the rally stalled there and the pair resumed its decline. As of GMT 05:00, it is trading around 152.5 yen.

Looking at the 1-hour chart of the USDJPY (as of GMT 05:00 on January 28), recovery attempts following the sharp decline continue to be capped from above, suggesting a bearish bias remains appropriate. If the pair breaks below 152.09 yen and the downward move continues, the key psychological level of 150 yen could become the next target.

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

The main economic indicators for today are as follows:

• GMT 19:00 Announcement on interest rates after U.S. Federal Open Market Committee (FOMC) meeting
• GMT 19:30 U.S. Regular press conference with FRB Chairman Jerome Powell