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 New

In the previous day’s U.S. currency trading, although the March U.S. Personal Consumption Expenditures (PCE) deflator showed stronger growth, the dollar-yen pair plummeted on speculation of currency intervention by Japanese authorities. The dollar-yen pair rose as high as around 160.70 before falling to around 155.50, and subsequently traded in the 156-yen range.Resistance near the 160.00 level is likely to be a key concern, while on the downside, the focus will be on whether the 155.50 to 155.00 range holds as support. We will be watching today’s U.S. ISM Manufacturing PMI to see if the U.S. dollar can find a bottom.

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

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 US Manufacturing Purchasing Managers’ Index (PMI, revised) for April at 22:45,and the US April ISM Manufacturing Index at 23:00. In particular, the UK PMI is likely to be a key driver during European trading hours, while the US PMI and ISM Manufacturing Index will be key drivers during New York trading hours; we should carefully assess the direction of the pound and the US dollar.