Dollar-Yen Holds Steady Ahead of BOJ Decision Amid Hawkish Expectations

The dollar-yen pair is expected to trade within the upper 155 to lower 156 range in foreign exchange markets on the 18th, ahead of the Bank of Japan's monetary policy decision announcement and Governor Kazuo Ueda's press conference.

Markets have almost fully priced in a 25 basis point rate hike, and attention has shifted from the hike itself toward the pace of additional tightening within the year and the strength of the BOJ's hawkish stance.

The yen rebounded for the first time in four sessions on the 17th, closing 35 sen stronger against the dollar at 155.90-156.00 yen per dollar, driven by declines in crude oil futures prices and lower U.S. long-term yields.