Will the dollar-yen pair consolidate around 162 yen following the slowdown in U.S. CPI?

Will the dollar-yen pair consolidate around 162 yen following the slowdown in U.S. CPI?

15.07.2026 New

In the U.S. currency market the previous day, the U.S. Consumer Price Index (CPI) for June came in at 3.5% year-over-year, slowing from 4.2% the previous month. It also fell 0.4% month-over-month, and as expectations for U.S. interest rate hikes receded amid signs of slowing inflation, the U.S. dollar weakened against major currencies.Meanwhile, concerns over rising crude oil prices amid tensions in the Middle East persisted, making it difficult for the dollar-yen pair to experience a significant decline. The dollar-yen pair traded within a range of 162.23 to 162.46 yen during the Tokyo session and was in the low 162.30 yen range as of 5:00 p.m.Resistance is likely to be seen around 162.50, while support is expected between 162.00 and 161.50. Today, we will be watching to see if the pair continues to consolidate around the 162-yen level following the release of the U.S. June Producer Price Index (PPI).

European currencies were supported by a weaker U.S. dollar following the slowdown in U.S. CPI, leading to periods of buying in the euro and the pound against the U.S. dollar.The euro-dollar pair traded in a range of 1.1379 to 1.1397 during the Tokyo session; after settling in the upper 1.1390s at 5:00 p.m., it rebounded to the low 1.14 range during New York trading hours.Bank of England (BOE) Governor Bailey, while noting the instability in the Middle East, expressed the view that the impact on the UK’s inflation outlook would be limited.For the euro/dollar pair, resistance is likely to be seen around 1.1430 to 1.1450, while support is likely to be around 1.1380 to 1.1350; the focus will likely be on whether the pair can hold above the 1.14 level.Eurozone industrial production data for May is scheduled for release today, and we will be watching to see if the euro’s rally continues.

Today’s economic indicators include the Eurozone’s May industrial production at 18:00, the U.S. MBA Mortgage Applications Index at 20:00, the U.S. July New York Fed Manufacturing Index at 21:30, the U.S. June Producer Price Index (PPI) and Core PPI, Canada’s May manufacturing shipments,Canada’s May Wholesale Sales, the Bank of Canada’s policy rate at 10:45 p.m., Fed Chair Warsh’s congressional testimony at 11:00 p.m., and the Federal Reserve’s Beige Book at 3:00 a.m.During New York trading hours in particular, the U.S. PPI, the Bank of Canada policy meeting, and the Fed Chair’s congressional testimony are likely to serve as key catalysts, so we will carefully monitor the reactions of the U.S. dollar, the yen, the euro, and the Canadian dollar.