Yesterday the USDJPY hit a low of 156.45 shortly after GMT 01:00, then turned higher. Strong U.S. initial jobless claims data released at GMT 13:30 added further support to dollar buying, and the pair reached a high of 157.84 shortly after GMT 20:00. However, it pulled back from the high in the 157.8-yen range, and trading for the day closed at 157.52 yen.

Today the USDJPY continues to consolidate around 157.5, caught between downward pressure from intervention fears at elevated levels and persistent dollar buying driven by uncertainty over the situation in the Middle East.

Looking at the 1-hour chart of the USDJPY (as of GMT 04:40 on March 6), there is resistance around 157.85, with support holding around 157.38. It may be best to follow whichever direction the price breaks.

(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 Nonfarm payrolls
• GMT 13:30 U.S. February Unemployment rate
• GMT 13:30 U.S. February Average hourly earnings
• GMT 13:30 U.S. January Retail sales
• GMT 13:30 U.S. January Retail sales (excluding autos)