Ahead of the FOMC Minutes, Will the Dollar-Yen Pair Test the 159-Yen Level?

Ahead of the FOMC Minutes, Will the Dollar-Yen Pair Test the 159-Yen Level?

19.08.2026 New

In the U.S. currency market the previous day, the U.S. dollar found support as inflation concerns came into focus against the backdrop of tensions in the Middle East and rising crude oil prices. When U.S. long-term interest rates rose, buyers stepped in to purchase the dollar, and the dollar index edged higher.On the other hand, expectations for a September rate hike have receded in light of recent weak employment and retail sales data, limiting the upside for the U.S. dollar. The USD/JPY pair traded within a range of 159.30 to 159.79 yen, closing the previous day near 159.56 yen. The previous day’s trading range was approximately 49 sen.Today, the pair is trading in the low 159-yen range, with resistance likely around 159.80–160.00 yen and support around 159.20–159.30 yen.

European currencies saw the pound edge lower against the U.S. dollar as signs of a slowdown emerged in the British labor market. The U.K. unemployment rate came in at 4.9%, exceeding market expectations of 4.8%, while private-sector wage growth also slowed to 2.8% year-over-year—the lowest rate since 2020.The number of job vacancies also fell to 707,000, reinforcing the view that there is little urgency for the Bank of England (BOE) to raise interest rates further. The pound traded within a range of $1.3518 to $1.3563 against the dollar and closed near $1.3537.The previous day’s trading range was approximately 45 pips. Today, the pair has rebounded to around 1.3550, and resistance is likely to be seen near 1.3560, while support is expected in the 1.3520–1.3530 range.

Today’s key events include ECB President Lagarde participating in a discussion on the global economic outlook at 4:10 p.m. At 6:00 p.m., the revised July Harmonized Index of Consumer Prices (HICP) for the eurozone will be released; the year-over-year rate is expected to be 2.9%, with the core index at 2.5%.At 27:00, the minutes from the July 28–29 meeting of the Federal Open Market Committee (FOMC) will be released. At that meeting, the policy rate was kept unchanged at 3.50–3.75%, though three members advocated for a 0.25-point rate hike.With expectations for U.S. rate hikes currently waning, attention will focus on whether the minutes reveal any changes in committee members’ views on inflation and future policy rates, and whether this will shift the direction of the dollar-yen pair.