With U.S. Durable Goods Orders Due Out, Can the Dollar-Yen Exchange Rate Hold Steady in the Mid-163 Yen Range?

With U.S. Durable Goods Orders Due Out, Can the Dollar-Yen Exchange Rate Hold Steady in the Mid-163 Yen Range?

27.07.2026 New

On the previous business day, the U.S. dollar remained in a strong range against the yen as the U.S. July Purchasing Managers’ Index (PMI, preliminary reading) showed the composite index rising to 53.6, highlighting the resilience of the U.S. economy.With the services sector PMI rising to 53.6 and U.S. new home sales for June coming in at an annualized rate of 628,000—exceeding market expectations—the U.S. dollar remained at elevated levels against the yen.On the other hand, as concerns over the situation in the Middle East eased somewhat at the start of the week and crude oil prices fell, the U.S. dollar has shown signs of a correction.The USD/JPY pair traded within a range of 163.66 to 163.95 yen in the Tokyo market on the previous trading day, and as of 5:00 PM, it was trading between 163.76 and 163.78 yen.The focus now is on whether the pair can hold around 163.50, with resistance near 164.00 and support in the 163.00 to 162.50 range. U.S. June durable goods orders are scheduled for release today, and we will be watching to see if they reaffirm the resilience of the U.S. economy.

In Europe, the eurozone’s July Purchasing Managers’ Index (PMI, preliminary reading) rose to 51.9, exceeding the 50-point threshold that marks the boundary between expansion and contraction for the first time in four months.In Germany, too, private-sector activity returned to expansionary territory on the back of improvements in the manufacturing sector, easing excessive concerns about the European economy. Meanwhile, with the U.S. dollar remaining strong, the euro-dollar pair faced resistance in the upper $1.13 range and traded around $1.14.In the Tokyo market on the previous trading day, the euro/dollar traded within a range of 1.1377 to 1.1401, and as of 5:00 p.m., it was trading between 1.1388 and 1.1391.Resistance is likely to be seen around 1.1400 to 1.1450, while support is likely to be around 1.1350 to 1.1300. Today’s release of Germany’s July IFO Business Climate Index is scheduled, and the focus is likely to be on whether it will confirm a recovery in the German economy, following the PMI data.

Today’s key economic indicators include the German IFO Business Climate Index for July at 17:00, Mexico’s June trade balance at 21:00, and U.S. June durable goods orders and U.S. June durable goods orders (excluding transportation equipment) month-over-month at 21:30.Although there aren’t many economic indicators from the U.S. and Europe today, the German IFO and U.S. durable goods orders are likely to influence the direction of the euro and the U.S. dollar, respectively. During New York trading hours, we’ll want to closely monitor the reaction of U.S. interest rates and the USD/JPY pair following the release of the U.S. data.