Will the USD/JPY, trading in thin volume, break out of the 158-yen range?
12.10.2026
- Light Trading Due to Holidays in Japan, the U.S., and Canada
- Mexico's August Industrial Production
As major markets were closed over the weekend, a review of the previous business day’s movements shows that the U.S. dollar held steady.The Dollar Index rose to around 102.25, marking its fourth consecutive week of gains, while the dollar-yen pair also extended its gains from the 157.70 yen range to the 158.40 yen range.At the start of the week, with the Japanese stock market closed, the USD/JPY pair is trading in the 158.10 range, while the Dollar Index is holding near 102.14, remaining at an 18-month high.
Among European currencies, the euro fell against the dollar for the fifth consecutive week. Amid ongoing concerns over France’s fiscal issues, the euro-dollar exchange rate hovered around $1.12 at the end of last week. Meanwhile, it has rebounded slightly to around $1.1210 at the start of this week.The pound-dollar pair also showed little clear direction, hovering around $1.3245, and the focus among European currencies is likely to be on whether the dollar’s strength will pause.
Today’s key economic indicator is Mexico’s August industrial production report, scheduled for 9:00 p.m. With stock markets in Japan and Canada closed and the U.S. bond market also closed, liquidity is likely to be lower than usual.With few major economic indicators on the horizon, we will be watching to see if the dollar’s movements gain momentum amid concerns over the situation in the Middle East and this week’s U.S. Consumer Price Index (CPI) release.
Author: Keisuke Sakurai
