With U.S. employment data on the horizon, attention is focused on the upside potential for the dollar-yen pair

With U.S. employment data on the horizon, attention is focused on the upside potential for the dollar-yen pair

02.06.2026

In the U.S. currency market the previous day, the U.S. May ISM Manufacturing PMI rose to 54.0 from 52.7 the previous month, highlighting the resilience of the U.S. manufacturing sector. Meanwhile, uncertainty surrounding the situation in the Middle East and concerns about inflationary pressures persisted, and the U.S. dollar remained at elevated levels against the yen.The USD/JPY pair fluctuated within a range of 159.25 to 159.77 before closing near 159.65, continuing to trade near the key 160.00 level.On the upside, the 159.80 to 160.00 range is likely to act as resistance, while on the downside, the focus will likely be on whether the pair can hold the 159.30 to 159.00 range.Today’s release of the U.S. April JOLTS job openings data is scheduled, and we will be watching to see if the U.S. dollar’s upside potential expands based on market sentiment regarding the U.S. labor market.

European currencies saw the euro struggle to gain ground against the dollar, as the eurozone’s revised May manufacturing PMI remained in expansionary territory, while the US dollar’s resilience weighed on the euro.The EUR/USD pair traded within a range of 1.1607 to 1.1666 before closing near 1.1635, and is now seeking direction in the low 1.1600s.On the upside, the 1.1660 to 1.1700 range is likely to be watched, while on the downside, the 1.1600 to 1.1580 range is likely to be in focus. The preliminary May HICP for the eurozone is scheduled for release today, and we will be watching to see how the euro reacts to this inflation data.

Today’s economic indicators include Japan’s May monetary base at 08:50, Australia’s April housing construction permits and January–March current account balance at 10:30, the UK’s April consumer credit balance and M4 money supply at 17:30, the Eurozone’s May Consumer Price Index(HICP, preliminary) and the HICP Core Index at 18:00, the South African BER Business Confidence Index for the April–June quarter at 19:00, and the U.S. April JOLTS Job Openings and Labor Turnover Survey at 23:00, along with remarks by Bank of England (BOE) Governor Bailey.The Eurozone HICP is expected to come in at 3.2% year-over-year, the HICP Core Index at 2.4% year-over-year, and U.S. JOLTS job openings at 6.865 million. During European trading hours, Eurozone inflation indicators are likely to drive the market, while U.S. employment-related indicators will be the key focus during New York trading hours; we should carefully monitor the reactions of the euro, the pound, and the U.S. dollar.