Fed Decision Set to Influence Dollar Value Against Yen and Canadian Dollar

The US dollar is holding steady against the yen and Canadian dollar ahead of the Federal Reserve meeting.

As the market expects a 25-basis-point rate hike, attention will focus on the updated economic projections, dot plot, and press conference.

A more hawkish Fed could support gains in USD/JPY towards 156.20-157.00, while a more cautious stance could put renewed pressure on the dollar.

USD/CAD has recovered from recent lows but is still testing resistance at 1.3895-1.3940.

A strong US retail sales data release today could provide further support for the dollar, although the market reaction will likely remain limited until the Fed decision.