With U.S. retail sales data on the horizon, will the dollar-yen pair seek direction in the 159-yen range?

With U.S. retail sales data on the horizon, will the dollar-yen pair test the 159-yen level while searching for direction?

14.08.2026 New

In U.S. currency markets the previous day, the U.S. Producer Price Index (PPI) for July came in at 0.0% month-over-month, falling short of the market forecast of 0.2%. The year-over-year rate also slowed to 4.7% from the previous month’s 5.5%, dampening expectations for a rate hike in September.Although the U.S. dollar was sold off immediately after the release, it subsequently recovered. The dollar-yen pair traded in a range of 159.02 to 159.57 yen and closed near 159.44 yen. The previous day’s trading range was approximately 55 sen.Today, the pair is trading in the low 159-yen range, with resistance likely around 159.50–159.60 yen and support around 159.00 yen.

European currencies were supported by the news that the U.K.’s gross domestic product (GDP) for the April–June quarter rose 0.4% quarter-on-quarter, in line with market expectations. GDP for June alone rose 0.3% month-on-month, exceeding market expectations of no change, highlighting the resilience of the U.K. economy.However, this did not provide any significant catalyst to alter the Bank of England’s (BOE) policy outlook, and the pound lacked direction against the U.S. dollar. The GBP/USD pair traded within a range of $1.3474 to $1.3514, closing near $1.3485.Today, the pair has rebounded to around $1.3500, and resistance is likely to be seen around $1.3510–$1.3520, while support is expected around $1.3470–$1.3480.

Today’s economic indicators include the revised French Consumer Price Index (CPI) for July at 3:45 p.m. and the revised Eurozone gross domestic product (GDP) for the April–June quarter and the June trade balance at 6:00 p.m.Eurozone GDP is expected to grow 0.4% quarter-over-quarter and 1.0% year-over-year. U.S. July retail sales are scheduled for 21:30, with forecasts of a 0.1% month-over-month increase and a 0.2% month-over-month increase for retail sales excluding automobiles.At 11:00 PM, the preliminary August University of Michigan Consumer Sentiment Index for the U.S. will also be released. With expectations for a U.S. interest rate hike having subsided following the previous day’s PPI data, attention will focus on whether retail sales confirm the resilience of the U.S. economy and how the USD/JPY pair—currently trading in the 159-yen range—will react.