Can the USD/JPY, which has plummeted, hold steady in the 158-yen range?

Can the USD/JPY, which has plummeted, hold steady in the 158-yen range?

20.08.2026 New

In the U.S. currency market the previous day, the U.S. Treasury announced that it would increase the size of its repurchase operations for 10- to 30-year U.S. Treasuries from $2 billion to at least $4 billion per transaction, leading to a decline in long-term U.S. interest rates and intensified selling of the U.S. dollar.The USD/JPY exchange rate fell by about 1.64 yen, from around 159.68 yen to around 158.04 yen, and closed in the low 158-yen range.In the minutes of the July FOMC meeting released later, many participants noted that interest rate hikes might be necessary if inflation does not slow, leading to periods where the momentum of U.S. dollar selling eased.In the near term, the 158.00 yen level is likely to serve as support, while the 159.00 yen level is likely to act as resistance.

In European markets, the U.K.’s July Consumer Price Index (CPI) rose 2.9% year-over-year, accelerating from the previous reading of 2.6%. Core CPI rose 2.6% year-over-year, exceeding the forecast of 2.5%.The pound’s reaction immediately following the release was limited, but the GBP/USD pair extended its gains on subsequent selling of the U.S. dollar.The GBP/USD pair rose from around $1.3520 to around $1.3632 and closed near $1.3600. The recent high of around $1.3630 is likely to act as resistance, while the previous day’s low of around $1.3520 is expected to provide support.

Today’s economic indicators include Hong Kong’s July Consumer Price Index (CPI) at 5:30 p.m. and the Eurozone’s June construction spending at 6:00 p.m.At 9:30 p.m., the U.S. will release last week’s initial jobless claims and continuing claims, the August Philadelphia Fed Manufacturing Index, and Canada’s July industrial product prices and raw material price index. Additionally, at 11:00 p.m., the U.S. July Composite Leading Economic Index will be released.U.S. initial jobless claims are expected to rise to 210,000 from the previous reading of 209,000, while the Philadelphia Fed Manufacturing Index is forecast to decline to 25.0 from 41.4. We will be watching closely for the U.S. dollar’s reaction following these releases.