USD/JPY Daily Analysis 13th March 2026

On Thursday morning, USD/JPY reached a high near 159.40. The yen strengthened slightly against the dollar as the Middle East war escalated. Iran launched its “strongest action” since the start of the war. Tehran tightened traffic control over the Strait of Hormuz, a key oil route. The US military rejected requests to escort oil tankers or other civilian vessels through the strait, with defense officials stating they would not do so until the Iranian threat subsided. Meanwhile, the Israel Defense Forces announced a “widespread wave of strikes” against Hezbollah infrastructure. Traders will be closely watching developments in the Iranian conflict. Any signs of escalating tensions between Iran and its neighbors, the US, and Israel could push safe-haven currencies like the yen higher, putting pressure on the pair in the short term.