With the U.S. job market holding steady, can the dollar-yen exchange rate stay in the 163-yen range?

With the U.S. job market holding steady, can the dollar-yen exchange rate stay in the 163-yen range?

24.07.2026 New

In the U.S. currency market the previous day, the resilience of the U.S. labor market came into focus as the number of new unemployment insurance claims for the previous week fell to 187,000, the lowest level since 1969.Combined with concerns over rising crude oil prices amid Middle East tensions and the risk of accelerating inflation, the U.S. dollar remained at elevated levels against the yen as U.S. interest rates rose.In the Tokyo market the previous day, the USD/JPY pair traded within a range of 163.00 to 163.42 yen, and at 17:00, it stood between 163.31 and 163.32 yen.On the upside, the range from 163.50 to around 164.00 is likely to be watched, while on the downside, the range from 163.00 to around 162.50 is likely to be in focus.Today, the U.S. July Purchasing Managers’ Index (PMI, preliminary reading) and U.S. June new home sales are scheduled for release, and we will be watching to see if the trend of U.S. dollar buying continues.

European currencies traded as the European Central Bank (ECB) left its main refinancing rate at 2.40% and its deposit facility rate at 2.25%.ECB President Lagarde cited inflation risks stemming from rising energy prices and indicated that future policy decisions would depend on the data; however, her failure to specify a timeline for additional rate hikes weighed on the euro against the U.S. dollar.The euro/dollar pair traded within a range of 1.1406 to 1.1435 in the Tokyo session the previous day; at 5:00 p.m., it stood between 1.1424 and 1.1425 before falling to the upper 1.13 range during New York trading hours.On the upside, the 1.1400 to 1.1450 range is likely to be a key level, while on the downside, the 1.1350 to 1.1300 range is likely to be a key level. Today, preliminary July PMI figures for the eurozone, Germany, France, and the UK are scheduled for release, and we will be watching to see if the outlook for the European economy provides support for the euro.

Today’s economic indicators include the preliminary July PMI for France’s manufacturing and services sectors at 4:15 p.m.,Germany’s July Manufacturing and Services PMI at 16:30, the Eurozone’s July Manufacturing and Services PMI at 17:00, the UK’s July Manufacturing and Services PMI at 17:30,Mexico’s June unemployment rate at 21:00, Canada’s June industrial product prices and raw material price index at 21:30, the U.S. July manufacturing and services PMI at 22:45, and U.S. June new home sales at 23:00.In particular, during European trading hours, we’ll want to closely monitor the euro’s reaction to the PMIs, and during New York trading hours, the U.S. dollar’s reaction to the U.S. PMIs and housing indicators.