With Mixed U.S. Housing Data, Will the Dollar-Yen Pair Consolidate in the Low 162s?

With Mixed U.S. Housing Data, Will the Dollar-Yen Pair Consolidate in the Low 162s?

20.07.2026 New

In the U.S. currency market the previous day, U.S. housing starts for June rose to an annualized rate of 1.427 million, while building permits fell to an annualized rate of 1.367 million, painting a mixed picture of the U.S. housing market.Although housing starts were driven upward by an increase in multifamily housing, starts and building permits for single-family homes remained weak, leading to continued caution regarding the housing market’s recovery.The preliminary July University of Michigan Consumer Sentiment Index rose to 54.4, signaling an improvement in consumer sentiment; however, concerns persisted over rising crude oil prices amid tensions in the Middle East, leaving the U.S. dollar directionless.The USD/JPY pair traded within a range of 162.13 to 162.46 yen in the Tokyo market on the previous business day, settling in the upper 162.20 yen range as of 5:00 PM. With Japanese markets closed at the start of the week and liquidity limited, the pair continues to trade in the low 162 yen range.Resistance is likely around 162.50, while support is expected between 162.00 and 161.50. Today, following the release of the U.S. June Composite Leading Economic Index, we will be watching to see if USD/JPY can hold above the 162-yen level.

European currencies saw little change from the preliminary figures, as the eurozone’s June Harmonized Index of Consumer Prices (HICP, revised) came in at 2.8% year-over-year, with the core index at 2.4%.While the slowdown in inflation since May was confirmed, the euro saw only modest movement against the U.S. dollar as the market struggled to establish a clear direction ahead of the European Central Bank (ECB) meeting.The euro-dollar pair traded within a range of 1.1438 to 1.1451 in the Tokyo market on the previous trading day, settling in the mid-1.1440s as of 5:00 p.m.Resistance levels around 1.1450 to 1.1500 and support levels around 1.1400 to 1.1380 are likely to be closely watched, and the focus will likely be on whether the pair can hold steady in the mid-1.14 range. Eurozone construction spending data for May is scheduled for release today, and we will be watching to see if the euro’s rally continues.

Today’s key economic indicators include the Eurozone’s May construction spending at 6:00 p.m., Canada’s June Consumer Price Index (CPI) at 9:30 p.m., and the U.S. June Composite Leading Economic Index at 11:00 p.m.Although major U.S. economic indicators are limited, the Canadian CPI tends to draw attention as a factor related to high oil prices and the Bank of Canada’s policy outlook. During New York trading hours, we will focus on the reactions of the Canadian dollar, U.S. dollar, and yen, and carefully monitor whether the USD/JPY pair can hold above the 162-yen level.