Can the USD/JPY, which has plummeted, hold onto the 158-yen level?
20.08.2026
- U.S. Initial Unemployment Insurance Claims for the Previous Week
- U.S. August Philadelphia Fed Manufacturing Index
In the U.S. currency market the previous day, the U.S. Treasury announced that it would increase the size of its buybacks of 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, closing in the low 158-yen range.In the minutes of the July FOMC meeting released later, many participants pointed out that interest rate hikes might be necessary if inflation does not slow, which led 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 expected 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 amid 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, along with the August Philadelphia Fed Manufacturing Index, while Canada will release its July Industrial Product Prices and Raw Materials Price Index. Additionally, at 11:00 p.m., the U.S. will release its July Composite Leading Economic Index.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.
Author: Keisuke Sakurai
