USD/JPY moved in a yen-strengthening direction yesterday, and the trend is expected to continue today toward around 154. The order book shows heavy buying around 152 and 153, while selling is concentrated around 160.
USD/JPY ultimately moved in a yen-strengthening direction yesterday. It briefly fell below 153 in the morning before rebounding, after which range-bound trading continued. Movements in 10-year U.S. Treasury yields and the presence of short covering were cited as factors behind the yen's strength. Japan's quarterly GDP also appears to have influenced USD/JPY after matching market expectations.
In today's technical analysis of USD/JPY, heavy buy orders were observed in the order book around 152 and 153, potentially providing support. Meanwhile, selling was identified from the upper 154s through the upper 162s, with sell orders particularly heavy around 160.
Correlation analysis of USD/JPY with other currency pairs showed a strong correlation over the past 24 hours with EUR/JPY, GBP/JPY and AUD/JPY, while the New Zealand dollar was relatively weak. Among the eight major currencies, the yen was in positive territory most recently, while the dollar was trading around zero.
The main economic indicators scheduled for release today include China's August Consumer Price Index (CPI) and Producer Price Index (PPI) at 10:30. The real-time USD/JPY rate, correlation analysis tools and strength charts are available through the relevant links on OANDA Lab.