With Western PMI data out, will the USD/JPY pair trade in the 161-yen range as markets gauge the euro’s direction?

With Western PMI data out, will the USD/JPY pair trade in the 161-yen range as markets gauge the euro’s direction?

23.06.2026

In U.S. currency trading the previous day, concerns arose that inflation in Canada was accelerating again after the country’s May Consumer Price Index (CPI) came in at 1.0% month-over-month and 3.2% year-over-year, exceeding market expectations.Although the Canadian dollar resisted a decline following the CPI release, the USD remained firm in the wake of the FOMC meeting, and the USD/CAD pair temporarily rose to the 1.4190 level.The USD/JPY traded within a range of 161.32 to 161.76 yen during the Tokyo session and was in the 161.70 yen range as of 5:00 PM.The focus now is on whether the pair can hold around 161.50; resistance is likely around 162.00, while support is likely between 161.00 and 160.50. With the preliminary U.S. June PMI data scheduled for release today, we will be watching to see if the U.S. dollar continues to trade at elevated levels.

European currencies rose as the preliminary June consumer confidence index for the eurozone improved to -17.7 from -19.0 the previous month, signaling a recovery in consumer sentiment.Meanwhile, European Central Bank (ECB) President Lagarde expressed a view that concerns over second-round effects of inflation are subsiding, making it difficult for expectations of further rate hikes to strengthen in one direction.The euro-dollar pair traded within a range of 1.1445 to 1.1473 in the Tokyo session and was in the upper 1.1440s as of 5:00 p.m.Resistance levels around 1.1480 to 1.1500 and support levels around 1.1440 to 1.1400 are likely to be closely watched, and the immediate focus will be on whether the pair can hold steady near 1.1450.Preliminary PMI figures for the eurozone, the UK, and the U.S. are scheduled for release today, and we will be monitoring the reaction of the euro and the pound against the dollar from European trading hours through New York trading hours.

Today’s economic indicators include Singapore’s May Consumer Price Index (CPI) at 14:00,the French June Business Sentiment Index at 15:45, the French June Manufacturing and Services PMI Flash Estimates at 16:15, the German June Manufacturing and Services PMI Flash Estimates at 16:30, the Eurozone June Manufacturing and Services PMI Flash Estimates at 17:00,the UK’s June preliminary Manufacturing and Services PMI at 5:30 p.m., the U.S.’s June preliminary Manufacturing, Services, and Composite PMI at 10:45 p.m., and the U.S. Federal Reserve Bank of Richmond’s June Manufacturing Index at 11:00 p.m.In particular, the European and U.S. PMIs tend to serve as indicators of economic strength or weakness, so it will be important to carefully assess the direction of the U.S. dollar, the yen, the euro, and the pound.