Yesterday the USDJPY was affected by conflicting reports surrounding a potential U.S.-Iran ceasefire but no meaningful progress on the situation in the Strait of Hormuz. Dollar buying remained dominant throughout the session. Shortly after GMT 00:30 it hit a low of 158.57, before climbing to a high of 159.50 around GMT 19:00, and trading for the day closed at 159.38 yen.

Today the USDJPY is caught between hopes and fears over a potential end to the U.S.-Iran conflict, leaving the market without a clear directional bias. After reaching a high of 159.53 around GMT 02:30, price has largely been moving sideways in the lower 159-yen range.

Looking at the 1-hour chart of the USDJPY (as of GMT 05:10 on March 26), after rallying to around 159.50, the price has been consolidating near the highs. A break above 159.53 could open the door to a further rally toward the 160.00 level.

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

The main economic indicators for today are as follows:

• GMT 12:30 U.S. Initial jobless claims for the previous week
• GMT 12:30 U.S. Continuing jobless claims for the previous week