Will the USD/JPY Pair Find Direction in the 160-yen Range Ahead of the U.S. CPI Release?
10.06.2026
- U.S. May Consumer Price Index (CPI)
- Bank of Canada Policy Rate
In the U.S. currency market yesterday, 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 release of the U.S. May Consumer Price Index (CPI).The USD/JPY pair traded within a range of 160.06 to 160.29 yen in the Tokyo session and was trading around 160.20 yen as of 17:00.The pair is currently holding above the key 160.00 level, and on the upside, the 160.50 to 160.70 range is likely to act as resistance. On the downside, the focus will likely be on whether the 160.00 to 159.50 range holds as a support zone.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 saw mixed performance as Germany’s April industrial production rebounded by 0.4% month-on-month, though the figure fell slightly short of market expectations, leaving investors cautious about the European economy.The euro/dollar pair traded within a range of 1.1528 to 1.1552 in the Tokyo session and stood near 1.1540 as of 17:00. 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 levels are likely to be seen around 1.1550 to 1.1580, while support levels are likely to be around 1.1520 to 1.1500; the immediate focus will be on whether the pair can hold above the low 1.1500s.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 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’s 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 tends to influence the outlook for U.S. monetary policy; together with the Bank of Canada’s policy rate announcement, we will carefully monitor the reactions of the U.S. dollar, the yen, the euro, and the Canadian dollar.
Author: Keisuke Sakurai
