Yesterday the USDJPY showed resilient movement while U.S. markets were closed. Following a meeting between Prime Minister Takaichi and Bank of Japan Governor Kazuo Ueda, yen weakness continued after the Governor made no mention of an early additional rate hike, reaching a high of 153.63 shortly after GMT 10:30. Trading for the day closed at 153.50 yen.

Today the USDJPY gapped down at the open then rose immediately. It reached a high of 153.75 shortly after GMT 23:30 (on February 16) but then lost momentum, hitting a low of 152.99 around GMT 04:30.

Looking at the 1-hour chart of the USDJPY (as of GMT 05:00 on February 17), after reaching the high of 153.75 and moving outside the Bollinger Band, it has fallen significantly to the -2 standard deviation level. If it breaks below the immediate low of 152.57, it would be advisable to shift to a bearish outlook.

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

The main economic indicators for today are as follows:

• GMT 13:30 U.S. February NY Empire State Manufacturing Index
• GMT 15:00 U.S. February NAHB Housing Market Index