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 rose 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, the price is seen reverting from the -3σ level of the Bollinger Bands toward the centerline, while on the daily chart, the 20-period moving average is acting as a support level, causing the price to rebound. Furthermore, since the price has returned to the range of its year-to-date highs on the weekly chart, we will be closely monitoring whether the U.S. dollar will show further gains at the start of the week.

European currencies fell as the euro weakened against the U.S. dollar following the release on the 20th of Germany’s February Producer Price Index (PPI), which showed a year-over-year decline of 3.3%, worsening from the previous month’s 3.0% decline.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 level 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 21:30 and U.S. construction spending at 23:00. No other major economic indicators or remarks by key officials are scheduled, so with last week’s policy rate announcements out of the way, the market is likely to become more susceptible to technical factors.We should remain cautious about the upside potential of the U.S. dollar, which has risen against the yen.