With the U.S. ISM Report Ahead, Can the Dollar-Yen Pair Hold the 156-Yen Level?

With the U.S. ISM Report Ahead, Can the Dollar-Yen Pair Hold the 156-Yen Level?

03.08.2026 New

In the U.S. currency market on the previous business day, the U.S. dollar fell sharply against the yen following coordinated yen-buying intervention by Japan and the U.S. Although the U.S. Employment Cost Index for the April–June quarter rose 0.9% quarter-on-quarter, exceeding the market forecast of 0.8%, the pressure to buy the yen following the intervention capped the dollar’s upside.The USD/JPY pair peaked near 160.88 yen before falling to around 157.28 yen, ending the week near 157.38 yen. The previous day’s trading range was approximately 3 yen 60 sen.During Asian trading hours today, the pair extended its decline to around 155.20 yen before rebounding to the 156-yen level. Resistance is likely to be seen around 157.50–158.00 yen, while support is expected around 155.00–155.20 yen.

European currencies rose as the preliminary July Harmonized Index of Consumer Prices (HICP) for the eurozone came in at 2.9% year-over-year, up from 2.8% the previous month. The core index also rose to 2.5% year-over-year, up from 2.4% the previous month, supporting expectations of an additional interest rate hike by the European Central Bank (ECB).Although the euro’s reaction immediately following the release was limited, the EUR/USD pair subsequently held steady against the backdrop of broad-based U.S. dollar weakness resulting from coordinated intervention by Japan and the U.S. The EUR/USD traded within a range of $1.1456 to $1.1549 and ended the week near $1.1528.During Asian trading hours today, the pair rose to around $1.1559, and the $1.1560 level is likely to act as resistance, while the $1.1500–$1.1530 range is expected to provide support.

Today’s economic indicators include the Swiss Consumer Price Index for July at 15:30, followed by the revised July Manufacturing Purchasing Managers’ Index (PMI) for France at 16:50, Germany at 16:55, the Eurozone at 17:00, and the UK at 17:30.At 10:45 p.m., the revised U.S. July Manufacturing PMI is scheduled for release, followed by the U.S. July ISM Manufacturing Index and June Construction Spending at 11:00 p.m. The ISM Manufacturing Index is expected to rise to 53.9 from the previous reading of 53.3.In addition to manufacturing indicators from Europe and the U.S., investors should also keep an eye on the volatile movements in the USD/JPY pair, as concerns about potential intervention persist.