Will the sharply falling USD/JPY pair seek direction following the U.S. ISM report?

Will the sharply falling USD/JPY pair seek direction following the U.S. ISM report?

01.05.2026

In the U.S. currency market the previous day, although growth in the U.S. March Personal Consumption Expenditures (PCE) deflator strengthened, the dollar-yen pair plummeted amid speculation of currency intervention by Japanese authorities. The dollar-yen pair rose temporarily to around 160.70 before falling to around 155.50, and subsequently traded in the 156-yen range.Resistance around the 160.00 level is likely to be a key concern, while on the downside, the focus will be on whether the range from 155.50 to around 155.00 will act as support. We will be watching to see if the U.S. dollar finds a bottom following today’s release of the U.S. ISM Manufacturing Index.

Among European currencies, the pound held steady against the dollar as the Bank of England (BOE) kept its policy rate unchanged at 3.75%. The Monetary Policy Committee (MPC) voted 8 to 1 to keep rates steady, with only Chief Economist Hugh Pill advocating for a rate hike to 4.00%.The GBP/USD pair fluctuated within a range of 1.3454 to 1.3611 before settling near 1.3600; whether it can hold above 1.3600 is the immediate focus.On the upside, the 1.3610 level is likely to be watched, while on the downside, the 1.3450 to 1.3400 range is likely to be a key focus; we will be watching the pound’s reaction to today’s revised UK PMI figures.

Today’s key economic indicators include the Australian Wholesale Price Index (PPI) for January–March at 10:30, the UK Nationwide House Price Index for April at 15:00, the UK Manufacturing Purchasing Managers’ Index (PMI, revised) for April at 17:30,the U.S. April Manufacturing Purchasing Managers’ Index (PMI, revised) at 10:45 p.m., and the U.S. April ISM Manufacturing Index at 11:00 p.m.In particular, the UK PMI is likely to be a key driver during European trading hours, while the US PMI and ISM Manufacturing Index are likely to be key drivers during New York trading hours; we will need to carefully assess the direction of the pound and the US dollar.