Yesterday the USDJPY hit a low of 157.29 yen around GMT 06:30, but reports surrounding the Strait of Hormuz in the Middle East sent crude oil prices swinging sharply in both directions, dragging the dollar into volatile trading. As the market shifted in favor of dollar buying, the pair reached a high of 158.13 yen around GMT 18:30.

Today the USDJPY fell to 157.91 yen shortly after GMT 23:00 (on March 10), before reversing higher and reaching a peak of 158.39 yen around GMT 01:30. As of GMT 04:30, the pair is trading in the 158.2-yen range, moving sideways.

Looking at the 1-hour chart of the USDJPY (as of GMT 04:50 on March 11), the pair has pulled back after reaching -2 standard deviations. A break above the 158.41 yen level marked on March 9 would signal a convincing return to a bullish outlook.

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

The main economic indicators for today are as follows:

• GMT 12:30 U.S. February Consumer Price Index (CPI)
• GMT 12:30 U.S. February Consumer Price Index (Core CPI)
• GMT 18:00 U.S. February Monthly Budget Statement