With key U.S. economic indicators on the horizon, the dollar-yen pair may test its upside potential

With key U.S. economic indicators on the horizon, the dollar-yen pair may test its upside potential

15.05.2026 New

In the U.S. currency market the previous day, the data presented a mixed picture: while U.S. retail sales for April rose 0.5% month-on-month, in line with market expectations, initial jobless claims for the previous week increased to 211,000. However, the U.S. dollar remained firm amid concerns over rising import prices and inflation risks stemming from the situation in the Middle East.The USD/JPY pair fluctuated within a range of 157.43 to 158.43 before closing near 158.38, making the ability to maintain the 158.00 level the immediate focus. Resistance is likely to be seen around 158.50, while support is expected between 157.50 and 157.00; we will assess the upside potential based on today’s U.S. manufacturing-related indicators.

European currencies saw the pound fall against the dollar as uncertainty surrounding the UK political situation weighed on the market, despite the UK’s preliminary Q1 GDP reading showing resilience with a 0.6% quarter-on-quarter increase. The GBP/USD pair briefly fell to around 1.3400 and has been trading with limited upside, unable to hold above the 1.3500 level.The key focus on the downside is whether the pair can hold around 1.3400, while on the upside, the 1.3480 to 1.3500 range is likely to be viewed as a target for a rebound. As the tug-of-war between the UK economy’s resilience and political risks continues, we want to assess the pound’s potential for a rebound.

Today’s key economic indicators include the final Hong Kong GDP figures for the January–March quarter at 5:30 p.m., Canadian housing starts for April at 9:15 p.m., the U.S. New York Fed Manufacturing Index for May and Canadian foreign direct investment in Canada for March at 9:30 p.m., and U.S. industrial production and capacity utilization for April at 10:15 p.m.Particularly during New York trading hours, the New York Fed Manufacturing Index and U.S. Industrial Production tend to serve as key indicators of the strength of the U.S. economy, so we should carefully monitor the reaction of the U.S. dollar and the Canadian dollar.