Dollar-Yen at Crossroads Ahead of FOMC Rate Decision and BOJ Meeting

The dollar-yen exchange rate is at a crossroads ahead of two key meetings next week.

The Federal Open Market Committee (FOMC) will meet on September 15-16, and the Bank of Japan's monetary policy meeting will take place on September 17-18.

Market participants are bracing for wide price swings, with dollar-yen potentially climbing to 158 or breaking below its year-to-date low of 152. The outcome will depend on the FOMC's rate decision and BOJ Governor Kazuo Ueda's press conference.

Ahead of the FOMC meeting, the August Consumer Price Index (CPI) release is expected to be a key data point. A strong reading could trigger dollar buying, while a weak reading would prompt dollar selling.