USD/JPY may seek direction amid U.S. housing data

USD/JPY likely to seek direction amid U.S. housing data

11.05.2026 New

In the previous trading session, the U.S. dollar held firm as the April U.S. employment report released over the weekend showed nonfarm payrolls increased by 115,000—exceeding market expectations—while the unemployment rate remained steady at 4.3%. With a significant deterioration in the U.S. labor market averted, expectations of an early rate cut by the Fed have receded somewhat, and the dollar/yen pair is trading around 157.00 at the start of the week.The focus now is on whether the pair can hold near 157.00, with resistance likely around 157.20 to 157.50 and support around 156.50 to 156.00. We will be watching today’s U.S. existing home sales data to gauge whether the dollar’s resilience will continue.

Against the backdrop of a stronger U.S. dollar following the release of U.S. employment data and concerns over the situation in the Middle East, the euro faced some resistance against the dollar.The euro/dollar pair is trading in the 1.1750 range, and the immediate focus is on whether it can break above the 1.1780 level. With ECB Vice President De Guindos expressing the view that caution is needed regarding interest rate hikes, the euro is likely to remain sensitive to monetary policy developments. On the downside, the 1.1740 to 1.1720 range is likely to be closely watched, and we will want to see if the dollar-led trend continues.

Today’s key economic indicators include China’s April Consumer Price Index (CPI) and Producer Price Index (PPI) at 10:30 a.m., and U.S. existing home sales for April at 11:00 p.m. China’s CPI rose 1.2% year-over-year, while PPI rose 2.8% year-over-year, both exceeding market expectations.U.S. existing home sales are expected to come in at an annualized rate of 4.05 million units, up 2.0% month-over-month, which could serve as evidence of the housing market’s resilience. While major economic indicators are limited at the start of the week, China’s inflation data and U.S. housing figures are likely to influence economic sentiment, so we should carefully monitor the reaction of the U.S. dollar and the euro.