Keep an eye on the direction of the USD/JPY pair as it hovers around the 159-yen level

Keep an eye on the direction of the USD/JPY pair as it hovers around the 159-yen level

27.05.2026 New

In the previous day’s U.S. currency trading, although the U.S. May Consumer Confidence Index fell to 93.1 from the previous month, it exceeded market expectations. Consequently, excessive caution regarding the U.S. economy failed to take hold, and the U.S. dollar remained firm. With uncertainty surrounding the situation in the Middle East persisting, the dollar/yen pair fluctuated within a range of 158.85 to 159.39 before closing near 159.25.Resistance near 159.50 is likely to be a key concern, while on the downside, the immediate focus will be on whether the pair can hold the 159.00 to 158.80 range. We will be watching today’s Richmond Fed Manufacturing Index to see if it provides clarity on the direction of the pair within the 159-yen range.

European currencies struggled to find direction against the dollar as a series of comments from ECB officials expressed caution regarding rising energy prices and inflation outlooks, while the dollar’s resilience also weighed on the market. The euro/dollar pair traded within a range of 1.1616 to 1.1646 before closing near 1.1637, continuing to consolidate in the low 1.1600s.On the upside, the 1.1650 level is likely to be watched, while on the downside, the 1.1610 to 1.1600 range is likely to be a key focus. With the French consumer confidence index scheduled for release during European trading hours, we will be watching to see if the euro can test the 1.1650 level.

Today’s key economic indicators include the French Consumer Confidence Index for May at 3:45 p.m., the U.S. MBA Mortgage Applications Index at 8:00 p.m., and the U.S. Richmond Fed Manufacturing Index for May at 11:00 p.m. The RBNZ kept its policy rate unchanged at 2.25%, and market participants are also keeping a close eye on the central bank’s caution regarding future inflation outlooks.During New York trading hours, the U.S. Richmond Fed Manufacturing Index is likely to serve as a key indicator of the U.S. economy, so we will closely monitor the reaction of the U.S. dollar, the euro, and the New Zealand dollar.