BoJ Signals Awaited as USD/JPY Range-Bound Ahead of Rate Hike Decision

The USD/JPY pair has been trading in a narrow range around 159.31, as investors assess the outlook for Bank of Japan monetary policy.

Markets have sharply increased their expectations for a September rate hike, with an implied probability of 87%, up from 23% before the July meeting.

This shift in expectations comes after former BoJ board member Seiji Adachi stated that the central bank is likely to raise rates as early as next month and could follow with another hike in January.

Market attention is now focused on today's speech by BoJ Deputy Governor Ryozo Himino, who may provide fresh signals on the timing of the next rate hike.BoJ Governor Kazuo Ueda will not attend the Fed's Jackson Hole Economic Symposium due to scheduling difficulties.