Fed Hike Odds Jump to 92.4%, JPY Volatility Set to Spike

The USD/JPY currency pair is holding steady near 154.55 as markets anticipate a potential rate hike from the US Federal Reserve on Wednesday.

This comes after inflation data showed an increase in August, and money markets now imply a 92.4% chance of a Fed rate rise, up from around 60% a week earlier.

The Bank of Japan's September policy meeting is also expected to see a 25 bps move, which has already been largely priced in.