Yesterday the USDJPY fell sharply shortly after the opening and hit a low of 153.99 around GMT 01:00, but then rebounded and traded firmly, recovering to 155.04 around GMT 12:30. However, it failed to hold the 155-yen range and fell back, with the pair closing the day at 154.65 yen.

Today the USDJPY saw yen selling accelerate on the back of strength in the Nikkei Stock Average, reaching a high of 155.31 yen around GMT 04:30. As of GMT 05:00, it continues to trade in the lower 155-yen range.

Looking at the 1-hour chart of the USDJPY (as of GMT 05:00 on February 24), it has been in a rebound phase since touching 154.0 yen and has clearly broken above 155.0 yen. In the near term, the market is watching the 155.64 yen level, and a break above this level could lead to further upside momentum.

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

The main economic indicators for today are as follows:

• GMT 14:00 U.S. December Case-Shiller home price index (YoY)
• GMT 15:00 U.S. February Richmond Fed manufacturing index
• GMT 15:00 U.S. February Consumer Confidence Index (Conference Board)