Will U.S. Housing Data Test the Upper Bound of the Dollar-Yen Pair?

Will U.S. Housing Data Test the Upper Bound of the Dollar-Yen Pair?

18.05.2026

In the U.S. currency market on the previous business day, the U.S. dollar held steady as inflation concerns intensified amid uncertainty over the situation in the Middle East and rising crude oil prices, coupled with rising U.S. interest rates.The USD/JPY pair fluctuated within a range of 158.29 to 158.86 before closing near 158.77, continuing to trade in the upper 158-yen range.Currently, the 159.00 level is likely to be viewed as an upper resistance, while on the downside, the focus will be on whether the 158.30 to 158.00 range will act as support. We will be watching today’s U.S. NAHB Housing Market Index to determine whether the U.S. dollar has room to rise further.

European currencies were weighed down by a strong U.S. dollar and uncertainty surrounding British politics, causing the pound to fall against the dollar. The GBP/USD pair traded within a range of 1.3314 to 1.3412 before closing around 1.3325, dropping to the low 1.3300s.The immediate focus is on whether the pound can recover to the 1.3350 level; resistance is likely around 1.3400, while support is expected between 1.3310 and 1.3300. With the U.S. dollar continuing to drive the market, we will be watching to see if the pound can find a bottom.

Today’s key economic indicators include China’s April retail sales and April industrial production at 11:00, Turkey’s May consumer confidence index at 16:00, the U.S. May NAHB Housing Market Index at 23:00, and U.S. March foreign securities investment at 29:00.China’s retail sales came in at 0.2% year-over-year, and industrial production at 4.1% year-over-year, both falling short of market expectations. The U.S. NAHB Housing Market Index is expected to come in at 34, which is likely to provide insight into sentiment in the U.S. housing market.While major indicators are limited at the start of the week, Chinese data and U.S. housing-related indicators are likely to influence the economic outlook, so we will need to carefully assess the reactions of the U.S. dollar and the pound.