BoJ Rate Hike Risk Keeps USD/JPY Rangebound Ahead of Key Meeting

The Japanese Yen is currently trading in a narrow range against the US Dollar, awaiting the outcome of the Bank of Japan's (BoJ) September policy meeting.

Analysts at Scotiabank note that market participants are weighing the possibility of another rate hike following the central bank's move in July.

The BoJ has signaled its willingness to adjust policy if inflation and wage growth remain on track, but the timing and magnitude of any move remain uncertain, keeping traders on edge.