All Eyes on Whether the Dollar-Yen Rally Will Continue Ahead of the U.S. ISM Report

All Eyes on Whether the Dollar-Yen Rally Will Continue Ahead of the U.S. ISM Report

05.05.2026

In the U.S. currency market the previous day, amid ongoing concerns over the situation in the Middle East, conditions favored buying the U.S. dollar as a safe-haven asset. With speculation about currency intervention by Japanese authorities still lingering, the dollar/yen pair traded within a range of 155.89 to 157.32 before closing near 157.22.The immediate focus is on whether the pair can hold near 157.00; resistance is likely to be seen around 157.30 to 158.00, while support is likely to be found around 156.00 to 155.50.We will be watching today’s U.S. ISM Non-Manufacturing PMI and trade balance data to determine whether the U.S. dollar’s rally will continue.

The European currency traded within a range of 89 to 157.32 in the eurozone before closing near 157.22.The immediate focus is on whether the currency can hold near 157.00. On the upside, resistance lies between 157.30 and 158. The April Manufacturing Purchasing Managers’ Index (PMI, revised) came in at 52.2, exceeding the key economic threshold of 50. However, concerns over preemptive purchases of raw materials, supply chain disruptions,and rising costs, the euro faced resistance against the dollar. The EUR/USD pair fluctuated within a range of 1.1681 to 1.1758 before closing near 1.1692.The immediate focus is on whether the euro can recover to the 1.1700 level; resistance is likely around 1.1760, while support is expected between 1.1680 and 1.1650. With the U.S. dollar continuing to drive market sentiment, we will be watching to see if the euro can find a solid floor.

Today’s economic indicators include Hong Kong’s preliminary GDP figures for January–March at 17:30, the U.S. and Canadian trade balances for March at 21:30,the U.S. April Services PMI (revised) and Composite PMI (revised) at 22:45,and at 23:00, the U.S. April ISM Non-Manufacturing Index, U.S. March New Home Sales, and U.S. March Job Openings and Labor Turnover Survey (JOLTS) job openings.Since the U.S. trade balance, ISM Non-Manufacturing Index, new home sales, and JOLTS data are all concentrated during New York trading hours, we will carefully monitor the initial reaction of the U.S. dollar and its subsequent movements.