As of March 26, 2026, the outlook for USDJPY remains moderately bullish. The pair appears poised to test the key resistance level at 160.00. Prices have been on the rise for the third consecutive session due to a strengthening dollar and lingering uncertainty around the situation in the Middle East.
Several fundamental factors are worth considering:
BoJ rate decision. At its March meeting, the Bank of Japan held borrowing costs at 0.75%, with eight votes against one, citing soaring oil prices. At the same time, the regulator’s cautious stance keeps weighing on the yen.
Strong dollar. Ten-year US Treasury yields remain elevated (4.32%). The Federal Reserve (Fed) maintains hawkish rhetoric, suggesting that interest rates may stay “higher for longer”. Taken together, these factors create a favorable environment for the greenback, boosting demand for the safe-haven currency.
Energy market. Japan relies heavily on crude imports. A recent spike in oil costs following disruptions at the Strait of Hormuz has taken a toll on the country’s trade balance and the yen, adding fuel to the pair’s rally.
The overall recommendation is to buy USDJPY from 159.20. Profits should be taken at the level of 159.70. Stop Loss could be set at 158.80.
The volume of the open position should be calculated so that the potential loss (protected by a Stop Loss order) does not exceed 1% of your deposit. If your account balance does not allow opening a position of this size, it is better to avoid entering the market on this signal and wait for other trade options that meet low-risk criteria.
This content is for informational purposes only and is not intended to be investing advice.
