This Week's Market July 21, 2026 (Tuesday)

Market Week Ahead - Tuesday, July 21, 2026

Last week, following both the US CPI and PPI for June coming in below market expectations, tensions regarding high inflation in the US have eased. However, due to the persistent interest rate differential between the US dollar and the Japanese yen, dip-buying continues whenever there is a pullback.

That said, as the rate approaches the key 163 yen level, caution over potential intervention by the Bank of Japan emerges, making it difficult to push higher. As a result, the pair continues to trade within a tight range.

This week as well, as long as the rate is supported at the 162 yen level, the main strategy will likely be looking for buying opportunities up to just below 163 yen.

Even if it breaks below 162 yen, there is another support line at 161.50, so barring an official intervention, a significant downside drop seems unlikely.