Will the dollar-yen exchange rate, which rose due to sanctions against Iran, hold steady in the 159-yen range?

Will the dollar-yen exchange rate, which rose due to sanctions against Iran, be able to hold steady in the 159-yen range?

25.08.2026 New

In the U.S. currency market the previous day, the U.S. dollar rose in response to the U.S. expansion of sanctions against Iran. U.S. Treasury Secretary Bessent announced plans to expand secondary sanctions to increase pressure on Iran.The Dollar Index rose 0.17% to 98.99, while the dollar-yen pair traded within a range of about 0.43 yen, between 158.71 and 159.14 yen, before closing near 159.11 yen.The 159.15-yen level is likely to act as resistance, while the 158.70-yen level is expected to serve as support. The key focus will be whether the pair can hold above the key psychological level of 159.00 yen.

Among European currencies, the pound edged lower against the dollar amid expectations of a rate hike by the Bank of England before the end of the year. Although the market has priced in the possibility of at least a 25-basis-point rate hike by the Bank of England by December, the four-week winning streak has come to a halt.The pound traded in the range of $1.3620 to $1.3650 and closed the previous day’s session in the $1.3630 range.The $1.3660 level is likely to act as resistance, while the $1.3620 level is expected to provide support. We will need to assess whether the pair will continue to consolidate as it approaches its recent high.

Today’s economic data includes the release of Germany’s revised GDP figures for the April–June quarter at 3:00 p.m., with forecasts of a 0.2% increase from the previous quarter and a 0.9% increase from the same period last year.At 5:00 p.m., Germany’s August IFO Business Climate Index will be released, and it is expected to rise to 87.2 from the previous reading of 86.6.At 10:00 PM, the U.S. Case-Shiller Home Price Index for June will be released, followed at 11:00 PM by U.S. new home sales for July and the Consumer Confidence Index for August.New home sales are expected to come in at an annualized rate of 620,000 units, while the Consumer Confidence Index is forecast at 90.2. We will be watching to see if the USD/JPY pair can hold steady in the 159-yen range in response to these economic indicators from Europe and the U.S.