With U.S. Housing Data on the Horizon, Will the Dollar-Yen Exchange Rate Approach 160 Yen?

With U.S. Housing Data on the Horizon, Will the Dollar-Yen Rate Approach 160 Yen?

18.08.2026 New

In the U.S. currency market the previous day, the New York Fed’s August Manufacturing Index came in at 20.6, exceeding both the market forecast of 11.5 and the previous reading of 15.6.While new orders and shipments also expanded, expectations for a September rate hike receded against the backdrop of recent weak employment and retail sales data, causing the U.S. dollar to face resistance against major currencies.The dollar-yen pair traded within a range of 158.83 to 159.61 yen, closing the previous day near 159.33 yen. The previous day’s trading range was approximately 78 sen.Today, the pair has risen to around 159.70 yen, and resistance is likely to be seen around 160.00 yen, while support is expected in the 159.30–159.40 yen range.

Among European currencies, the pound rose against the U.S. dollar amid speculation that the Bank of England (BOE) may raise interest rates before the end of the year.In addition to last week’s UK GDP figures showing resilience, interest in monetary policy intensified ahead of today’s employment data and tomorrow’s inflation figures. The pound traded in a range of $1.3527 to $1.3573 against the dollar and closed near $1.3545.The previous day’s trading range was approximately 46 pips. Today, the pair is trading in the $1.3530 range, with resistance likely near $1.3570 and support likely near $1.3520–$1.3530.

Today’s economic indicators include the UK employment report at 3:00 p.m. and the German ZEW Economic Sentiment Survey for August at 6:00 p.m. The German ZEW Expectations Index is expected to rise to 30.0 from the previous reading of 26.3.At 21:30, U.S. July housing starts, building permits, and the import price index are scheduled for release; housing starts are expected to come in at an annualized rate of 1.342 million units, and building permits at 1.375 million.At 10:15 p.m., U.S. July industrial production and capacity utilization figures will be released, followed by the pending home sales index at 11:00 p.m. With expectations for a U.S. interest rate hike receding, attention will focus on whether housing and production-related indicators signal the resilience of the U.S. economy and how the USD/JPY pair reacts as it approaches the 160 yen mark.