Yesterday the USDJPY saw broad dollar strength on the back of Middle East tensions, hitting a high of 159.65 shortly after GMT 08:00, before a sharp drop following a social media post by U.S. President Trump indicating he had instructed a delay in any attack on Iran. Around GMT 18:30, the price touched a low of 158.02, and trading for the day closed at 158.38.

Today the USDJPY saw dollar buying resume after reports emerged that Iranian lawmakers had rejected negotiations with U.S. President Trump. A high of 158.79 was reached shortly after GMT 04:00, and as of GMT 05:00 the pair continues to trade near that high.

Looking at the 1-hour chart of the USDJPY (as of GMT 05:00 on March 24), the middle line is sloping downward, though price action is pushing toward +1 standard deviation. A break above the near-term high of 158.84 could see the pair extend its gains through the 159-yen range.

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

The main economic indicators for today are as follows:

• GMT 13:45 U.S. March Manufacturing Purchasing Managers Index
• GMT 13:45 U.S. March Services Purchasing Managers Index
• GMT 13:45 U.S. March Composite Purchasing Managers Index
• GMT 14:00 U.S. March Richmond Fed manufacturing index