Fed and BoJ Decisions Threaten JPY Recovery Against USD

Rabobank's Senior FX Strategist Jane Foley warns that Federal Reserve and Bank of Japan decisions may impact USD/JPY exchange rates.

Foley notes that Fed Chair Warsh's stance on forward guidance adds uncertainty, which could weigh on the Japanese Yen's recovery against the US Dollar.

The BoJ meeting this week will be influenced by the outcome of the previous week's Fed policy meeting, as the Fed may have a greater impact on USD/JPY than the BoJ.

Foley believes that an absence of hawkish signals from the BoJ could lead to further upside pressure on USD/JPY, making it necessary for the BoJ to be clearly hawkish at this week's meeting.