Yesterday the USDJPY saw wide swings in both directions but ultimately traded without a clear trend. The pair found support at a low of 152.26 around GMT 03:30, then climbed to a high of 153.75 shortly after GMT 12:30, before pulling back to the 152.3-yen range. Trading for the day closed at 152.72 yen.

Today the USDJPY came under yen-selling pressure after reports that former Cabinet Office advisor Mr. Honda suggested the BOJ is likely to hold off on a rate hike in March, dampening expectations for additional tightening. The pair reached a high of 153.34 around GMT 01:30 and as of GMT 05:00 is trading in the low 153-yen range.

Looking at the 1-hour chart of the USDJPY (as of GMT 05:20 on February 13), the decline has paused, but it is difficult to see a clear direction on this timeframe. It would be advisable to follow whichever direction breaks first, the near-term high of 153.75 yen or the near-term low of 152.26 yen

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

The main economic indicators for today are as follows:

• GMT 13:30 U.S. January Consumer Price Index (CPI)
• GMT 13:30 U.S. January Consumer Price Index (Core CPI)