As the yen continues to weaken, the dollar-yen exchange rate is testing whether it can settle in the 163-yen range
22.07.2026
- South Africa's June Consumer Price Index (CPI)
- U.S. MBA Mortgage Applications Index
In the U.S. currency market the previous day, the U.S. dollar rose against the yen amid rising crude oil prices—driven by tensions in the Middle East—and higher U.S. interest rates.In the Tokyo market the previous day, the dollar-yen pair traded within a range of 162.44 to 162.62 yen, and at 5:00 p.m., it stood between 162.59 and 162.60 yen.Later in the New York session, the pair rose to 163.24 yen, reaching levels not seen since 1986, which has heightened concerns about the yen’s continued weakening and the possibility of currency intervention.The focus now is on whether the pair can hold around 163.00; resistance is likely to be seen around 163.50 to 164.00, while support is likely to be found around 162.50 to 162.00. With few major U.S. economic indicators scheduled for today, we will be monitoring trends in U.S. interest rates and crude oil prices.
European currencies rose as Germany’s July ZEW Economic Sentiment Index came in at 26.3, a significant improvement from the previous month’s 10.5. Eurozone sentiment also rose to 23.4, reflecting cautious optimism about the outlook for the European economy.Meanwhile, as the US dollar strengthened, the euro-dollar pair briefly dipped below $1.14, capping its upside. In the Tokyo market the previous day, it traded within a range of 1.1410 to 1.1425, and as of 5:00 PM, it stood between 1.1422 and 1.1424.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 above the 1.14 level. Ahead of the European Central Bank (ECB) Governing Council meeting, we will be watching to see if the euro’s rally continues.
Today’s key economic indicators include South Africa’s June Consumer Price Index (CPI) at 5:00 p.m., the U.S. MBA Mortgage Applications Index at 8:00 p.m., and South Africa’s May retail sales figures.With few major economic indicators scheduled in the U.S. and Europe, the foreign exchange market is likely to be driven by developments in the Middle East, crude oil prices, U.S. interest rates, and concerns over the yen’s continued weakening. We will closely monitor whether the USD/JPY pair holds steady in the 163-yen range and whether the EUR/USD pair breaks through the 1.14-dollar level.
Author: Keisuke Sakurai
