Yesterday the USDJPY opened with an upward gap and rose to 155.49 yen shortly after GMT 23:00 (on February 1). The pair pulled back to 154.55 yen around GMT 06:00 before entering a period of consolidation. Following the strong January ISM Manufacturing PMI data released at GMT 15:00, the pair reached a high of 155.75 yen around GMT 19:30, and trading for the day closed at 155.62 yen.

Today the USDJPY has been gradually softening while consolidating around 155.5 yen since shortly after the open.

Looking at the 1-hour chart of the USDJPY (as of February 3, GMT 04:20), the middle line is sloping upward, indicating an uptrend on this timeframe. With the rally appearing to pause after reaching 155.78 yen, this looks like a favorable opportunity to buy on dips.

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

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