Focus on the Battle for the 160-Yen Mark in the Dollar-Yen Pair and U.S. Housing Data Following the BOJ Meeting

Focus on the Battle for the 160-Yen Mark in the Dollar-Yen Pair and U.S. Housing Data Following the BOJ Meeting

16.06.2026

In the U.S. currency market the previous day, 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 receded as concerns over the situation in the Middle East eased amid speculation about a peace agreement between the U.S. and Iran.The USD/JPY pair traded within a range of 159.76 to 160.22 yen in the Tokyo session and was in the low 160.10 yen range as of 5:00 p.m.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.With the Bank of Japan’s post-monetary policy meeting press conference and U.S. housing data scheduled for today, we will be watching to see if the USD/JPY pair can firmly establish itself in the 160-yen range.

European currencies came under pressure as the eurozone’s April industrial production rose 0.1% month-over-month—a slowdown from the previous month’s 0.4% gain—and fell short of market expectations, prompting caution regarding the region’s economic outlook.Meanwhile, supported by the trend of a weaker U.S. dollar, the euro/dollar pair held steady around 1.1600. 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 found around 1.1620 to 1.1650, while support is likely to be around 1.1600 to 1.1580; the immediate focus will likely be on whether the pair can hold near the 1.1600 level.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 economic indicators 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.