Focus on the USD/JPY Trading in the 160-yen Range Following the U.S. PPI Release and U.K. GDP

Focus on the USD/JPY Trading in the 160-yen Range Following the U.S. PPI Release and U.K. GDP

12.06.2026

In the U.S. currency market the previous day, the U.S. Producer Price Index (PPI) for May came in at 1.1% month-over-month and 6.5% year-over-year, exceeding market expectations, which drew attention to inflationary pressures at the producer level.On the other hand, expectations of easing tensions in the Middle East and a reassessment of views on U.S. monetary policy made it difficult for the U.S. dollar to extend its gains. The USD/JPY pair traded within a range of 160.43 to 160.59 yen in the Tokyo session and stood at around 160.50 yen as of 17:00.Although the pair is currently trading above the key 160.00 level, resistance is likely to be felt in the 160.50 to 160.70 range. On the downside, the focus will likely be on whether the 160.00 to 159.50 range acts as a support zone.Today, the preliminary June University of Michigan Consumer Sentiment Index is scheduled for release, and we will be watching to see how the U.S. dollar reacts to the U.S. economic sentiment data.

European currencies held steady against the dollar as the European Central Bank (ECB) raised its key policy rate by 0.25 points. ECB President Lagarde indicated that policy would be data-dependent, and caution remained regarding the possibility of further rate hikes.The euro-dollar pair traded in a range of 1.1527 to 1.1555 during the Tokyo session and stood 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.With the release of the UK’s April monthly GDP and industrial production data scheduled for today, 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 gross domestic product (GDP), April industrial production, April manufacturing production index, and April trade balance at 15:00; Germany’s May consumer price index (CPI, revised) at 15:00; France’s May consumer price index (CPI, revised) at 15:45;Turkey’s April current account balance at 16:00, and the preliminary U.S. 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 U.S. consumer sentiment will be a key factor during New York trading hours; we should carefully assess the directional trends for the U.S. dollar, the yen, the euro, and the pound.