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With the U.S. JOLTS Report Coming Up, Can the Dollar-Yen Pair Hold the 157-Yen Level?

Market Report

With the U.S. JOLTS Report Coming Up, Can the Dollar-Yen Pair Hold the 157-Yen Level?

Today's Highlights
  1. U.S. June Trade Balance
  2. U.S. June JOLTS Job Openings

In the U.S. currency market the previous day, the July ISM Manufacturing Index came in at 55.6, exceeding market expectations of 54.0 and the previous reading of 53.3. This marked the highest level since May 2022, and the expansion in new orders and employment provided support for the U.S. dollar.Meanwhile, despite coordinated intervention by Japan and the U.S., concerns persisted regarding further yen-buying intervention. The USD/JPY pair traded within a range of 155.23 to 157.89 yen, closing the previous day near 157.17 yen. The previous day’s trading range was approximately 2 yen 66 sen.During Asian trading hours today, the pair rose to the 157.70 yen level, and resistance is likely to be seen around 157.90–158.00 yen, while support is expected around 157.00 yen.

Among European currencies, the pound fell against the U.S. dollar for the first time in three business days amid concerns over the outlook for U.S. interest rates. The cautious stance on interest rate hikes expressed at last week’s Bank of England (BOE) policy meeting also weighed on the pound’s upside.The GBP/USD pair fell from a high of around $1.3508 to around $1.3417, closing the previous day at around $1.3434. The previous day’s trading range was approximately 91 pips.During today’s Asian trading session, the pair has been trading around $1.3420. We will be watching to see if the $1.3500 level acts as resistance and the $1.3400–$1.3420 range acts as support.

Today’s economic indicators include the release of the U.S. June trade balance and the Canadian June trade balance at 9:30 p.m. The U.S. trade balance is expected to show a deficit of $73 billion, narrowing from the previous deficit of $77.6 billion.At 11:00 p.m., the U.S. June manufacturing new orders and JOLTS job openings are scheduled for release. Manufacturing new orders are expected to rise 0.2% month-over-month, while JOLTS job openings are projected to decline to 7.470 million from the previous reading of 7.594 million.Following the strong manufacturing indicators released the previous day, we will be watching the U.S. dollar’s reaction to see if labor demand remains resilient.

桜井 慶介

Author: Keisuke Sakurai

He has over 10 years of experience in FX trading. In the financial sector, he has been involved in investment management focused primarily on foreign exchange markets and has experience as an asset management advisor. Drawing on his extensive experience, he specializes in technical and fundamental analysis.

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