Yesterday the USDJPY hit a low of 158.56 shortly after GMT 06:00, before moving steadily higher. Following the FOMC's announcement to hold rates steady, hawkish comments from the Fed Chair pushed back rate cut expectations, and the pair reached a high of 159.89 shortly after GMT 19:30, with trading for the day closing at that level.

Today the USDJPY saw consolidation around 159.8 yen from the opening. Even after the Bank of Japan announced it was holding rates steady, the reaction was muted, and as of GMT 04:30 the pair continues to trade sideways in the 159.6-yen range.

Looking at the 1-hour chart of the USDJPY (as of GMT 04:40 on March 19), the middle line is trending upward, though price action has flattened out near the highs. A break below 159.54 yen could open the door to a decline toward the 159.0-yen range.

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

The main economic indicators for today are as follows:

• GMT 12:30 U.S. Initial jobless claims for the previous week
• GMT 12:30 U.S. Continuing jobless claims for the previous week
• GMT 12:30 U.S. March Philadelphia Fed Manufacturing Index
• GMT 14:00 U.S. February Leading Index
• GMT 14:00 U.S. January New home sales