Yesterday the USDJPY reached a high of 160.46 shortly after GMT 22:30 (on March 29), but softened thereafter as crude oil prices lost momentum. Trading for the day closed at 159.65, after finding a floor at a low of 159.32 shortly after GMT 14:00.

Today the USDJPY was bought alongside rising crude oil prices following reports that a Kuwaiti oil tanker had come under Iranian attack, reaching a high of 159.97 shortly after GMT 01:00. Upside has been capped just before the 160-yen level, with the pair trading in the 159.6-yen range as of GMT 05:00.

Looking at the 1-hour chart of the USDJPY (as of GMT 05:00 on March 31), selling pressure is building near the 160-yen level, though no clear directional bias has yet emerged. A break below 159.32 would likely open the door to a move toward the 159-yen range.

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

The main economic indicators for today are as follows:

• GMT 13:00 U.S. January Case-Shiller home price index
• GMT 13:45 U.S. March Chicago Purchasing Managers Index
• GMT 14:00 U.S. March Consumer Confidence Index
• GMT 14:00 U.S. February JOLTS Job Openings

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