Focus on the USD/JPY Approaching the 161-yen Level and U.K. Retail Sales

Focus on the USD/JPY Approaching the 161-yen Level and U.K. Retail Sales

19.06.2026 New

In the previous day’s U.S. currency markets, the U.S. dollar strengthened against major currencies amid expectations of additional interest rate hikes this year following the Federal Open Market Committee (FOMC) meeting.The number of new U.S. unemployment insurance claims for the previous week fell to 226,000 from the previously revised figure of 230,000, and the Philadelphia Fed Manufacturing Index for June improved to 10.3 from the previous reading of -0.4, highlighting the resilience of the U.S. economy.The dollar-yen pair traded within a range of 160.55 to 160.76 yen in the Tokyo session and was in the upper 160.50 range as of 17:00.Subsequently, the U.S. dollar strengthened and the yen weakened, with the pair currently testing the low 161-yen range. Resistance is likely to be found around 161.50 to 162.00, while support is likely around 160.50 to 160.00; investors should also remain vigilant regarding authorities’ concerns over the yen’s continued depreciation.

European currencies were affected as the Bank of England (BOE) kept its policy rate unchanged at 3.75%, while the Monetary Policy Committee (MPC) vote was 7 to 2, with two members advocating for a rate hike to 4.00%.Although concerns about inflation remained, the BOE’s cautious stance and the strength of the U.S. dollar following the FOMC meeting weighed on the pound, causing it to trade with limited upside against the dollar. The GBP/USD pair fell from the mid-1.33 range to around 1.3210 at one point and is currently trading near a two-month low.On the upside, the 1.3300 to 1.3350 range is likely to be a key level, while on the downside, the 1.3210 to 1.3200 range is likely to be a key level. UK May retail sales data is scheduled for release today, and we will be watching to see if it brings any change in the pound’s direction following the BOE meeting.

Today’s key economic indicators include the UK GfK Consumer Confidence Survey for June at 08:01, Japan’s May National Consumer Price Index (CPI) at 08:30,the minutes of the Bank of Japan’s Monetary Policy Meeting at 08:50, UK May retail sales and Germany’s May Producer Price Index (PPI) at 15:00, and Canada’s April retail sales at 21:30.Since major economic indicators are limited in the U.S., we will carefully assess the sustainability of the U.S. dollar’s strength—which intensified following the previous day’s FOMC meeting—as well as the reactions of the pound and the Canadian dollar to UK retail sales during European trading hours and Canadian retail sales during New York trading hours.