Yesterday the USDJPY opened with choppy trading in the lower 159-yen range amid Middle Eastern tensions, hit a low of 159.28 shortly after GMT 06:30, then broke higher to reach a high of 159.84 around GMT 19:00. However, when reports emerged that U.S. President Trump was delaying strikes on Iranian energy facilities, the pair briefly plunged to the 159.3-yen range. Trading for the day closed at 159.69 yen.

Today the USDJPY has been somewhat sluggish, with upside remaining heavy following the sharp drop. It hit a high of 159.69 shortly after GMT 00:00, then reversed lower to reach a low of 159.45 shortly after GMT 01:30. As of GMT 05:00, it is trading in the 159.6-yen range.

Looking at the 1-hour chart of the USDJPY (as of GMT 05:20 on March 27), the pair has continued to make higher lows, recovering to nearly half the distance of the sharp drop. As long as the pair holds above 159.35, the upward trend appears likely to continue.

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

The main economic indicators for today are as follows:

• GMT 14:00 U.S. March Michigan Consumer Sentiment, final