Concerns Over Upside Potential for the U.S. Dollar Against the Yen

Concerns Over Upside Potential for 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, recovering 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 as the euro weakened against the U.S. dollar following the release of Germany’s February Producer Price Index (PPI) on the 20th, which showed a year-on-year decline of 3.3%, worsening from the previous month’s 3.0% drop.The euro fell against the U.S. dollar 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 economic indicators or speeches by key officials are scheduled, so with last week’s central bank interest rate announcements now behind us, technical factors are likely to take center stage. We should remain cautious about the upside potential of the U.S. dollar, which has been rising against the yen.