Yesterday the USDJPY trended toward yen weakness after reports emerged that Prime Minister Takaichi expressed concerns about additional rate hikes during a meeting with Bank of Japan Governor Ueda, reaching a high of 156.28 yen shortly after GMT 09:00. However, it failed to extend gains and fell back to the 155.5-yen range, with the pair closing the day at 155.81 yen.

Today the USDJPY moved toward yen strength from around GMT 00:00, but rebounded after the government's proposal for Bank of Japan Policy Board members was announced, reaching a high of 156.04 yen around GMT 04:00. However, the market has been reluctant to chase higher levels, and as of GMT 05:00, it is trading slightly weak in the upper 155-yen range.

Looking at the 1-hour chart of the USDJPY (as of GMT 05:10 on February 25), selling pressure is intensifying at levels above 156 yen, suggesting a downward trend is likely to develop. The 155.0 yen level will be the dividing line between a rebound or a breakdown.

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

Today, no closely watched economic indicators are scheduled for release.