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

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

19.06.2026

In the U.S. currency market the previous day, 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’s Manufacturing Activity 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 yen range as of 5:00 p.m.Subsequently, the U.S. dollar strengthened and the yen weakened, with the pair recently 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 mindful of authorities’ vigilance regarding the yen’s continued depreciation.

European currencies were under pressure as the Bank of England (BOE) kept its policy rate unchanged at 3.75%, while the vote by the Monetary Policy Committee (MPC) 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 Bank of Japan’s Monetary Policy Meeting Minutes 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 there are few major economic indicators in the U.S. today, 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 the UK retail sales data during European trading hours and the Canadian retail sales data during New York trading hours.