On Friday of last week the USDJPY saw yen selling driven by Finance Minister Katayama's comments on the possibility of a return to deflation, as well as ongoing instability in the Middle East. The February Non-farm payrolls figure released at GMT 13:30 came in worse than expected, sending the pair briefly to a low of 157.38 immediately after the announcement, before quickly recovering to reach a high of 158.08 shortly after GMT 14:00. Trading for the day closed at 157.75, ending the week at that level.

Today the USDJPY gapped up at the open. After touching a low of 158.20 around GMT 22:30 (on March 8), the pair reversed higher and reached a high of 158.89 shortly after GMT 03:30. As of GMT 05:00, the upward momentum has paused, with the pair consolidating in the 158.7-yen range.

Looking at the 1-hour chart of the USDJPY (as of GMT 05:00 on March 9), the pair is in a strong uptrend on this timeframe. Although it has pulled back from outside the Bollinger Band, it appears to be finding support around 158.65. As long as the pair holds above the 158.03 level, the upward trend appears likely to continue.

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

Today, no highly influential economic indicators are scheduled for release.