Attention on the direction of the dollar-yen exchange rate ahead of U.S. housing data

Attention on the direction of the dollar-yen exchange rate ahead of U.S. housing data

26.05.2026 New

Yesterday, with U.S. markets closed, crude oil prices fell on expectations of progress in talks between the U.S. and Iran, and the U.S. dollar faced resistance as inflation concerns eased somewhat. The USD/JPY pair fluctuated within a range of 158.76 to 159.06 before closing around 158.96, and is currently testing the waters around the 159.00 level.On the upside, the 159.00 to 159.20 range is likely to be watched, while on the downside, the 158.70 to 158.50 range is likely to be in focus. With U.S. housing price data and the consumer confidence index scheduled for release today, we will be watching to see if the direction of the U.S. dollar becomes clearer.

European currencies held firm against the dollar as the U.S. dollar weakened slightly. The euro/dollar pair traded within a range of 1.1629 to 1.1654 before closing around 1.1636, and is now testing the waters in the mid-1.1600s.The immediate focus is on whether the pair can break above the 1.1650 level, with the 1.1600 to 1.1590 range likely to serve as support. While major news events during European trading hours are limited, the euro’s upside potential is likely to shift depending on the dollar’s reaction to U.S. economic indicators.

Today’s key economic indicators include the U.S. March Case-Shiller Home Price Index, the March Home Price Index, and the first-quarter Home Price Index at 10:00 p.m., as well as the U.S. May Consumer Confidence Index at 11:00 p.m.The Case-Shiller Home Price Index is expected to rise 1.0% year-over-year, while the Consumer Confidence Index is forecast to come in at 92.0. As the U.S. markets reopen during New York trading hours, the results of the housing price and consumer sentiment data are likely to influence views on the U.S. economy, so we will closely monitor the reaction of the U.S. dollar, the yen, and the euro.