Yesterday the USDJPY traded sideways in the upper 156-yen range during the Tokyo session, but broke above 157 around GMT 06:00 and held firm, reaching a high of 157.33 yen around GMT 09:30. Intervention fears then triggered a pullback, with the pair hitting a low of 156.53 around GMT 13:30, before rebounding. Trading for the day closed at 157.00 yen.

Today the USDJPY touched 157.05 shortly after GMT 23:00 (on February 5), then turned lower and hit a low of 156.51 yen around GMT 01:30. Recovery attempts have been muted, with upside capped, and as of GMT 04:30 the pair is trading in the 156.6-yen range.

Looking at the 1-hour chart of the USDJPY (as of GMT 04:30 on February 6), the rally has paused and highs are trending lower, but on this timeframe the directional bias remains unclear. A break below 156.35 yen could lead to a short-term decline toward the 156.0-yen level.

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

The main economic indicators for today are as follows:

• GMT 15:00 U.S. February Michigan Consumer Sentiment, preliminary