Caution over the upside potential of the U.S. dollar against the yen

Caution over the upside potential of the U.S. dollar against the yen

23.03.2026

Last weekend, the U.S. dollar rose against the yen. The USD/JPY pair climbed from 157.671 to 159.386. It recovered from below the 20-period moving average (MA) on the hourly chart to above it.On the 4-hour chart, we are seeing a return from the -3σ Bollinger Band to the centerline, while on the daily chart, the 20-day moving average is acting as a support level, causing prices to rebound. Furthermore, on the weekly chart, prices have returned to the range of their year-to-date highs, so we will be watching closely to see if the US dollar shows further gains at the start of the week.

European currencies fell against the U.S. dollar as Germany’s February Producer Price Index (PPI), released on the 20th, showed a year-over-year decline of 3.3%, worsening from the previous month’s 3.0% drop.The EUR/USD pair fell from 1.1594 to 1.1524. On the hourly chart, the price has moved from above the 20-period moving average (MA) to below it. On the 4-hour chart, the price has pulled back after touching the +3σ line of the Bollinger Bands, and on the daily chart, it is currently retesting the 200-period simple moving average (SMA), which it has broken below.

Today’s economic indicators include the Chicago Fed National Activity Index at 9:30 p.m. and U.S. construction spending at 11:00 p.m. No other major indicators or key speeches are scheduled, so with last week’s policy rate announcements out of the way, technical factors are likely to take center stage. We should remain cautious about the upside potential of the U.S. dollar against the yen.

Past Market Reports

1. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

2. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

3. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

4. 14.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

5. 13.04.2026New

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

6. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

7. 09.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

8. 08.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

9. 07.04.2026

   Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran

10. 06.04.2026

    Investors should be wary of sudden spikes in volatility while major markets are closed