Dollar-Yen Stalls at 154 as Market Awaits Key Rate Decisions

The US dollar continued to gain strength against the Japanese yen in New York trading on Monday, pushing the pair down to around 154 yen. This comes as higher crude oil prices and elevated U.S. long-term yields fueled yen-selling and dollar-buying momentum overseas.

Despite briefly reaching 154.74 yen, the highest level since July 7th, the pair stalled just below the key threshold of 155 yen, underscoring its thickness.

The reversal from morning weakness to afternoon stalling is attributed to profit-taking and position adjustment ahead of the critical resistance level. The Bank of Japan's monetary policy meeting this week will be closely watched, alongside the Federal Open Market Committee's (FOMC) decision, which may spark further volatility in the foreign exchange market.

The euro also strengthened against the yen, with the EUR/JPY pair shifting towards yen strength, while EUR/USD remained confined to a range around 1.15 dollars due to parallel weakening of both currencies against the yen.