Will the USD/JPY pair find direction in the 160-yen range ahead of the U.S. CPI release?
10.06.2026
- U.S. Consumer Price Index (CPI) for May
- Bank of Canada Policy Rate
In the previous day’s U.S. currency trading, although the U.S. April trade deficit narrowed to $55.9 billion from the revised figure of $56.6 billion for the previous month, the U.S. dollar remained directionless ahead of today’s U.S. May Consumer Price Index (CPI) release.The USD/JPY pair traded in a range of 160.06 to 160.29 yen in the Tokyo session and was trading around 160.20 yen as of 5:00 PM.The pair is currently holding the key 160.00 level, with resistance likely to be found around 160.50 to 160.70 on the upside. On the downside, the focus will likely be on whether the 160.00 to 159.50 range holds as support.With U.S. CPI and core CPI data scheduled for release today, we will be watching to see if the U.S. dollar continues to trade at elevated levels.
European currencies remained under pressure as German industrial production in April rebounded by 0.4% month-on-month but fell slightly short of market expectations, leaving investors cautious about the European economy.The euro/dollar traded in a range of 1.1528 to 1.1552 in the Tokyo session and stood near 1.1540 as of 5:00 p.m. Amid a wait-and-see stance ahead of the U.S. CPI release, the pair is searching for direction in the mid-1.1500s.Resistance is likely to be seen around 1.1550 to 1.1580, while support is likely to be around 1.1520 to 1.1500, making the ability to hold above the low 1.1500s the immediate focus.With few major European economic indicators scheduled for today, we will be watching for the pair’s reaction against the dollar following the release of the U.S. CPI.
Today’s economic indicators include Japan’s May Domestic Corporate Goods Price Index at 08:50, China’s May Producer Price Index (PPI) and Consumer Price Index (CPI) at 10:30,the U.S. MBA Mortgage Applications Index at 20:00, the U.S. May Consumer Price Index (CPI) and Core CPI at 21:30, the Bank of Canada policy rate at 22:45, and the U.S. May Monthly Budget Balance at 27:00.Particularly during New York trading hours, the U.S. CPI is likely to influence the outlook for U.S. monetary policy; combined with the Bank of Canada’s policy rate decision, we will carefully monitor the reaction of the U.S. dollar, the yen, the euro, and the Canadian dollar.
Author: Keisuke Sakurai
