Fed Decision Expected to Influence Yen Price Ahead of BoJ Meeting

The Japanese Yen has trimmed its losses against the US Dollar on Wednesday, but USD/JPY prices have been capped above 163.30, a level that was previously reached.

Investors are waiting for the Federal Reserve's monetary policy decision, expected later in the day. The Fed is likely to leave interest rates unchanged, but there's a 35% chance of a rate hike, according to the CME Group's FedWatch Tool.

A surprise rate hike would send the US Dollar rallying, while a pause with signals of monetary tightening in the coming months might support the USD. The recent uptick in oil prices and inflation concerns are expected to influence the Fed's decision.