Focus on the battle for the 160-yen mark in the dollar-yen exchange rate and U.S. housing data following the Bank of Japan meeting

Focus on the battle for the 160-yen mark in the dollar-yen exchange rate and U.S. housing data following the Bank of Japan meeting

16.06.2026 New

In the previous day’s U.S. currency trading, the June New York Fed Manufacturing Index fell to 5.7 from the previous reading of 19.6, prompting concerns about a slowdown in U.S. manufacturing momentum. Demand for the U.S. dollar as a safe-haven asset also waned as concerns over the situation in the Middle East eased following speculation about a peace agreement between the U.S. and Iran.The dollar-yen pair traded in a range of 159.76 to 160.22 yen in the Tokyo market, settling in the low 160.10 yen range as of 5:00 PM.Currently, the pair continues to search for direction around the 160.00 level, with resistance likely to be found in the 160.50 to 160.70 range on the upside. On the downside, the focus will likely be on whether the pair can hold the 159.80 to 159.50 range.Today’s schedule includes the Bank of Japan’s press conference following its monetary policy meeting and U.S. housing data, so we will be watching to see if the USD/JPY pair can establish itself in the 160 yen range.

European currencies came under pressure as market participants adopted a cautious view of the eurozone economy after April industrial production grew by 0.1% month-on-month, marking a slowdown from the previous month’s 0.4% and falling short of market expectations.Meanwhile, supported by the trend of a weaker U.S. dollar, the euro/dollar pair held firm around the 1.1600 level. In the Tokyo market, it traded within a range of 1.1595 to 1.1621, settling in the mid-1.1600s as of 5:00 p.m.Resistance is likely to be seen around 1.1620 to 1.1650, while support is likely to be around 1.1600 to 1.1580, making the ability to hold near 1.1600 the immediate focus.The ZEW Economic Sentiment Surveys for the Eurozone and Germany are scheduled for release today, and we will be watching the euro’s reaction during European trading hours.

Today’s key events include the Bank of Japan’s press conference following its Monetary Policy Meeting at 3:30 p.m., the Eurozone June ZEW Economic Sentiment Survey and the Germany June ZEW Economic Sentiment Survey at 6:00 p.m.,and at 21:30, the U.S. May housing starts, May building permits, May import price index, and May export price index.In particular, the yen exchange rate following the BOJ meeting, the ZEW Economic Sentiment Surveys during European trading hours, and the U.S. housing-related indicators during New York trading hours are likely to serve as key catalysts, so we should carefully assess the direction of the U.S. dollar, the yen, and the euro.