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

In the U.S. currency market the previous day, although the U.S. May Consumer Confidence Index fell to 93.1 from the previous month, it exceeded market expectations, making it difficult for excessive caution regarding the U.S. economy to take hold, and the U.S. dollar remained firm.With uncertainty surrounding the situation in the Middle East persisting, the USD/JPY pair fluctuated within a range of 158.85 to 159.39 before closing near 159.25.Resistance around 159.50 is likely to be a key level to watch, 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 a clearer sense of direction in the 159-yen range.

European currencies found themselves in a state of uncertainty against the U.S. dollar, as a series of comments from senior ECB officials expressing concern over rising energy prices and inflation outlooks were offset by the dollar’s resilience.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 May Consumer Confidence Index at 15:45, the U.S. MBA Mortgage Applications Index at 20:00, and the U.S. May Richmond Fed Manufacturing Index at 23:00.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 U.S. economic conditions, so we will carefully monitor the reactions of the U.S. dollar, the euro, and the New Zealand dollar.