Yesterday the USDJPY traded softly during Tokyo hours, hitting a low of 155.30 around GMT 04:30, before dollar buying strengthened and pushed the pair to a high of 156.08 around GMT 14:00. However, concerns over potential intervention triggered a pullback, and trading for the day closed at 155.72 yen.

Today the USDJPY has traded firmly on reports of the LDP's lead in the lower house election, reaching a high of 156.39 shortly after GMT 03:00. As of GMT 05:00, the pair is trading in the lower 156-yen range.

Looking at the 1-hour chart of the USDJPY (as of GMT 05:10 on February 4), the pair continues to set new highs while forming pullbacks along the way. The upward trend continues, though a break below 155.52 may warrant a wait-and-see approach.

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

The main economic indicators for today are as follows:

• GMT 13:15 U.S. January ADP employment change
• GMT 14:45 U.S. January Services Purchasing Managers Index (PMI, revised)
• GMT 14:45 U.S. January Composite Purchasing Managers Index (PMI, revised)
• GMT 15:00 U.S. January ISM Services PMI