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

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

23.06.2026 New

In the U.S. currency market 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 continued its upward trend following 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 in the Tokyo session and stood in the 161.70 yen range as of 17:00.The focus now is on whether the pair can hold around 161.50; resistance is likely around 162.00, while support is expected 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 gain significant momentum.The euro-dollar pair traded within a range of 1.1445 to 1.1473 in the Tokyo session and stood in the upper 1.1440s as of 17:00.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 June French Business Sentiment Index at 15:45, the June French Manufacturing and Services PMI Flash Estimates at 16:15, the June German Manufacturing and Services PMI Flash Estimates at 16:30, the June Eurozone Manufacturing and Services PMI Flash Estimates at 17:00,the UK’s June preliminary Manufacturing and Services PMI at 17:30, the U.S.’s June preliminary Manufacturing, Services, and Composite PMI at 22:45, and the U.S. Richmond Fed Manufacturing Index for June at 23:00.In particular, the European and U.S. PMIs tend to serve as indicators of economic strength or weakness, so it is important to carefully assess the direction of the U.S. dollar, the yen, the euro, and the pound.