With the U.S. ISM report on the horizon, all eyes are on the direction of the USD/JPY pair in the 159-yen range

With the U.S. ISM report coming up, all eyes are on the direction of the USD/JPY pair in the 159-yen range

01.06.2026

Last weekend, demand for the U.S. dollar as a safe-haven asset eased slightly amid expectations of an extension to the ceasefire between the U.S. and Iran.Meanwhile, concerns about persistently high inflation and the outlook for U.S. interest rates remained, and the dollar-yen pair fluctuated within a range of 159.10 to 159.39 before closing near 159.27.At the start of the week, uncertainty surrounding the situation in the Middle East has once again come into focus, and the pair is currently testing the waters in the mid-159 yen range.On the upside, the 159.50 to 160.00 range is likely to act as resistance, while on the downside, the focus will be on whether the pair can hold the 159.00 to 158.80 range. We will be watching today’s U.S. ISM Manufacturing Index to gauge whether the U.S. dollar’s resilience will continue.

European currencies rose against the U.S. dollar as the dollar weakened slightly. The euro/dollar pair traded within a range of 1.1624 to 1.1687 before closing around 1.1660, remaining in the upper 1.1600s.On the upside, the 1.1680 to 1.1700 range is likely to be a key focus, while on the downside, the 1.1640 to 1.1620 range is likely to be a key focus.Revised May manufacturing PMI figures for France, Germany, the eurozone, and the UK are scheduled for release today, which should provide further confirmation of the resilience of the European economy. We will be watching to see if the euro tests the 1.1700 level following the release of these PMI results.

Today’s economic indicators include Switzerland’s April real retail sales at 15:30, Switzerland’s Q1 GDP and Turkey’s Q1 GDP at 16:00, Switzerland’s May manufacturing PMI at 16:30, France’s May manufacturing PMI (revised) at 16:50,4:55 p.m. Germany May Manufacturing PMI (revised), 5:00 p.m. Eurozone May Manufacturing PMI (revised),5:30 PM UK May Manufacturing PMI (revised), 6:00 PM Eurozone April Unemployment Rate, 10:45 PM US May Manufacturing PMI (revised), and 11:00 PM US May ISM Manufacturing Index and April Construction Spending will be the main focus.The U.S. ISM Manufacturing PMI is expected to come in at 53.1, which is likely to confirm the expansionary trend in the U.S. manufacturing sector. During European trading hours, we will focus on the various countries’ PMIs, and during New York trading hours, we will focus on the U.S. ISM PMI, carefully monitoring the reactions of the U.S. dollar, the euro, and the pound.