Yesterday the USDJPY opened with an upward gap following the LDP's decisive victory in the lower house election on the 8th, reaching a high of 157.65 shortly after GMT 23:00 (on February 8), but then turned lower due to intervention concerns and a sense that the news had been fully priced in. The pair continued its weak performance afterward, hitting a low of 155.52 around GMT 14:30. Trading for the day closed at 155.82 yen.

Today the USDJPY rose to 156.29 around GMT 00:30 but then lost momentum, with yen buying developing against the backdrop of intervention concerns and the completion of the lower house election. The pair hit a low of 155.13 yen shortly after GMT 04:30, and as of GMT 05:00 is trading sideways in the lower 155-yen range.

Looking at the 1-hour chart of the USDJPY (as of GMT 05:10 on February 10), the pair has been unable to reach new highs and continues to decline. As long as the pair fails to break above 156.29 yen, the downward outlook appears likely to continue

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

The main economic indicators for today are as follows:

• GMT 13:30 U.S. Q4 Employment Cost Index
• GMT 13:30 U.S. December Retail sales
• GMT 13:30 U.S. December Retail sales (excluding autos)