Yesterday the USDJPY opened firmly, reaching a high of 159.49 yen around GMT 06:00, before reversing lower and touching a low of 158.72 yen around GMT 13:30. It subsequently recovered, and trading for the day closed at 159.00 yen.

Today the USDJPY hit a high of 159.49 yen shortly after GMT 00:30, before pulling back and breaking below the previous day's low. It touched a low of 158.65 yen shortly after GMT 05:00, and the soft tone has continued since.

Looking at the 1-hour chart of the USDJPY (as of GMT 05:30 on March 18), the price has broken below the consolidation range, with the middle line continuing to slope downward. A temporary rebound back inside the Bollinger Band is possible, but the downward trend appears likely to continue.

(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 Producer Price Index
• GMT 14:00 U.S. January Factory Orders
• GMT 18:00 Announcement on interest rates after U.S. Federal Open Market Committee (FOMC) meeting
• GMT 18:30 U.S. Regular press conference with FRB Chairman Jerome Powell
• GMT 20:00 U.S. January Total net TIC flows