This Week's Market - March 31, 2026 (Tuesday)

Regarding USD/JPY, Fed Chair Powell stated that "policy is in a good place suited for a wait-and-see approach," effectively dismissing the rate hike expectations that had emerged among some market participants. The dollar has been holding firm, moving in line with trends in U.S. long-term interest rates. However, continued caution is warranted as the outlook for the conflicts involving Iran, the United States, and Israel remains uncertain.

On this final day of March, the U.S. economic indicators drawing attention include the March U.S. Consumer Confidence Index and the February U.S. Job Openings and Labor Turnover Survey (JOLTS) job openings figures. From a technical standpoint, the downside target for USD/JPY today is yesterday's low of 159.33 yen, while the upside target is the key level of 160.00 yen. However, since there has not yet been any significant selling pressure, the question is whether dips should still be supported and bought. That said, this looks likely to remain a short-term trade.