Will the dollar-yen exchange rate hover around 162 yen amid tensions in the Middle East?

Will the dollar-yen exchange rate hover around 162 yen amid tensions in the Middle East?

13.07.2026

In U.S. currency trading the previous day, Canada’s June employment report showed that the number of new jobs increased by 18,200, exceeding market expectations of a 10,000 increase.The unemployment rate also fell to 6.5%, and as Canada’s labor market showed resilience, the Canadian dollar saw modest buying against the U.S. dollar. Meanwhile, crude oil prices rose at the start of the week due to renewed tensions in the Middle East, and the U.S. dollar has remained firm amid concerns that inflation may accelerate again.The USD/JPY pair traded within a range of 161.29 to 162.43 yen in the Tokyo market on the previous trading day and stood at around 161.70 yen as of 5:00 PM.The focus now is on whether the pair can hold around 162.00; resistance is likely to be seen around 162.50, while support is expected between 161.50 and 161.00. Although the U.S. June monthly budget balance is scheduled for release today, the foreign exchange market will be watching for reactions to the situation in the Middle East and U.S. interest rates.

European currencies were affected as Germany’s June Consumer Price Index (CPI, revised) came in at 2.3% year-over-year, slowing from 2.6% the previous month.France’s June Consumer Price Index, calculated according to EU standards, also rose 2.0% year-on-year, marking a slowdown from May’s 2.8%, leading to the view that inflationary pressures in Europe have eased somewhat.Meanwhile, the European Central Bank (ECB) remains vigilant against upward price pressures, causing the euro to trade in a range against the U.S. dollar as it sought direction.The euro-dollar pair traded within a range of 1.1432 to 1.1460 in the Tokyo market on the previous business day and stood in the upper 1.1430s as of 5:00 p.m.Resistance levels around 1.1460 to 1.1500 and support levels around 1.1430 to 1.1400 are likely to be closely watched, and the focus will be on whether the pair can hold above the low 1.14 range.

Today’s key economic indicators include Turkey’s May current account balance at 16:00 and the U.S. June monthly fiscal balance at 27:00. Since economic indicators from major economies are limited, factors such as crude oil prices, U.S. interest rates, and the U.S. dollar’s reaction to the situation in the Middle East are likely to drive the foreign exchange market more than the indicators themselves.We’ll want to closely monitor whether the USD/JPY pair can hold its ground around the 162 yen level and whether the EUR/USD pair can maintain its movement in the low 1.14 range.