Forex Market Update: New York Session Sees USD/JPY Pullback

Session brief Neutral bias Sep 25, 2026, 12:47 UTC

Nathan BrooksUS Markets & Federal Reserve Analyst · ForexR analyst

The US Dollar pauses its recent advance during the New York session overlap, highlighted by a drop in USD/JPY. Incoming US consumer sentiment data and inflation expectations stand as the next scheduled catalysts.

US Dollar Pauses Ahead of Consumer Data

As the London and New York sessions overlap, the US Dollar rally has stalled. Ethereum (ETH/USD) and Gold (XAU/USD) lead the gainers, up 0.98% and 0.64% respectively on the day. WTI Crude Oil (XTI/USD) lags the board with a decline of 2.43%, followed by USD/JPY, which is down 0.72%.

USD/JPY and USD/CAD Setups

USD/JPY trades at 157.693, with both daily and H4 trends showing mixed signals. Price sits below S1 at 158.07, positioning this level as immediate resistance. A continued decline would target the day low at 157.472, while a move back above S1 could open the way toward the pivot point at 158.542, which stands as further overhead resistance.

USD/CAD sits at 1.41415, up 0.06% on the day, backed by upward trends on both the daily and H4 timeframes. The pair holds above the pivot at 1.4122, which acts as support. A push higher would challenge resistance at R1 at 1.41601, whereas a drop below the pivot would shift focus down to support at S1 at 1.40953.

Yield Context and Newsflow

Recent financial media coverage from FX Street, Action Forex, and InvestingCube discusses a pause in the broader US Dollar advance and tracks the pullback in USD/JPY. For context, US Treasury yields closed on September 24 with the 2-year yield at 4.87%, up 2 basis points, and the 10-year yield at 5.18%, up 7 basis points.

Economic Calendar Risks

Turning to the economic calendar, markets face a block of US data at 14:00 UTC today. The University of Michigan will release the Consumer Sentiment Index, estimated at 47.6 compared to a previous 47.8, along with the Consumer Expectations Index. At the same time, the 1-year and 5-year Consumer Inflation Expectations are due, with the 1-year figure estimated to match its previous read of 4.6. Later today, scheduled speeches include the Fed's Hammack and the ECB's Vujčić at 18:00 UTC.

Bottom Line

With conflicting technical trends across major pairs and the US Dollar softening slightly on the day, attention shifts to the incoming inflation expectations and consumer sentiment figures. The scheduled data releases at 14:00 UTC stand as the next major events for the remainder of the session.