On Friday of last week the USDJPY saw risk sentiment return to the market following reports that the Trump administration was considering the occupation or blockade of Iran's Kharg Island, accelerating both the rise in oil prices and safe-haven dollar buying. Starting in the 157.7-yen range, it climbed to 159.38 shortly after GMT 18:30, and trading for the day closed in the 159-yen range.

Today the USDJPY continues to see yen selling pressure, supported by rising oil prices amid growing concerns over an escalation of the conflict with Iran. It hit a low of 159.01 around GMT 00:00, before rebounding to a high of 159.61 around GMT 03:00. As of GMT 04:30, the pair is trading in the lower 159-yen range.

Looking at the 1-hour chart of the USDJPY (as of GMT 04:40 on March 23), the pair has pulled back after reaching a high, and the market is now at a key juncture -- whether it will form a dip and resume its upward move remains to be seen. If the near-term high is broken, the next upside target looks to be around 159.80. A break below 159.00 could reignite selling pressure.

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

Today, no closely watched economic indicators are scheduled for release.