Will the dollar-yen pair, which rebounded on U.S. economic data, be able to hold above the 159-yen level?

Will the dollar-yen pair, which rebounded on U.S. economic indicators, be able to hold above the 159-yen level?

21.08.2026 New

In U.S. markets the previous day, dollar buying and yen selling prevailed following the release of U.S. economic indicators that were stronger than market expectations. Initial jobless claims for the previous week came in at 206,000, below the market forecast of 210,000.The previous figure was revised upward from 209,000 to 212,000. The August Philadelphia Fed Manufacturing Index also came in at 47.4, exceeding both the previous reading of 41.4 and the market forecast of 25.0.The USD/JPY pair traded within a range of approximately 1.18 yen, between 158.02 and 159.20 yen, and closed near 158.90 yen. The level around 159.20 yen is likely to act as resistance, while the level around 158.00 yen is likely to act as support.

European currencies rose as expectations of an interest rate hike by the Bank of England (BOE)—driven by persistently high inflation in the UK—continued to support the pound, while a weaker dollar, resulting from increased buying of long-term U.S. Treasuries, also contributed to the gains.The pound rose against the dollar from around $1.3592 to around $1.3661, hitting a new high not seen in about six months.It subsequently retreated from its high, narrowing its gains to close near $1.3643. The recent high of around $1.3660 is likely to act as resistance, while the key psychological level of around $1.3600 is expected to provide support.

Today’s economic indicators include the release of the UK’s July retail sales figures at 3:00 p.m., followed by the preliminary August PMI figures for France, Germany, the Eurozone, and the UK from 4:15 p.m. to 5:30 p.m.UK retail sales (excluding automobiles) are expected to decline to -0.5% from the previous month-over-month increase of 1.1%.At 21:30, Canada’s June retail sales are scheduled for release; at 22:45, the US August PMI flash estimates; and at 23:00, the Eurozone’s August consumer confidence flash estimate.We will be watching to see if economic sentiment in Europe and the U.S., along with UK consumer spending, provides clarity on the direction of the USD/JPY and GBP/USD pairs.