Focus on the USD/JPY pair trading in the 160-yen range following the U.S. PPI release and on U.K. GDP

Focus on the USD/JPY pair trading in the 160-yen range following the U.S. PPI release and on UK GDP

12.06.2026 New

In the U.S. currency market the previous day, the U.S. Producer Price Index (PPI) for May came in at 1.1% month-on-month and 6.5% year-on-year, exceeding market expectations, which heightened concerns about inflationary pressures at the producer level.On the other hand, expectations of easing tensions in the Middle East and adjustments to views on U.S. monetary policy made it difficult for the U.S. dollar to extend its gains. The dollar/yen pair traded in a range of 160.43 to 160.59 yen in the Tokyo market and stood near 160.50 yen as of 5:00 p.m.Although the pair has recently broken above the 160.00 psychological level, resistance is likely to be felt around the 160.50 to 160.70 range. On the downside, the focus will likely be on whether the 160.00 to 159.50 range holds as a support zone.Today, the preliminary June University of Michigan Consumer Sentiment Index is scheduled for release, and we will be watching for the dollar’s reaction to the U.S. economic sentiment data.

European currencies held firm against the dollar as the European Central Bank (ECB) raised its key policy rate by 0.25 percentage points. ECB President Lagarde indicated that policy would be data-dependent, and caution remained regarding the possibility of further rate hikes.The euro traded in a range of 1.1527 to 1.1555 in the Tokyo session, settling in the mid-1.1540s as of 5:00 p.m.Following the ECB Governing Council meeting, the pair briefly tested the upper 1.15 range, with resistance likely around 1.1580 to 1.1600 and support around 1.1530 to 1.1500.Today, the UK’s April monthly GDP and industrial production figures are scheduled for release, and we will be watching for the reaction of the pound and the euro during European trading hours.

Today’s key economic indicators include the UK’s April monthly GDP, April industrial production, April manufacturing production index, and April trade balance at 3:00 PM; Germany’s May consumer price index (CPI, revised) at 3:00 PM;Turkey’s April current account balance at 16:00, and the preliminary US University of Michigan Consumer Sentiment Index for June at 23:00. In particular, UK GDP is likely to be a key driver during European trading hours, while US consumer sentiment will be a key factor during New York trading hours; we should carefully assess the direction of the US dollar, yen, euro, and pound.