Hawkish Fed Lifts USD/JPY to New Highs as BoJ Decision Looms
The USD/JPY currency pair has been on a strong rally, reaching an intraday high of 156.41 on Wednesday, September 16, 2026, following the Federal Reserve's 25-basis-point rate hike to 3.75%-4.00%. The Fed also raised its 2026 core PCE inflation forecast to 3.4% and its estimate of the longer-run Fed funds policy rate to 3.2%, further reinforcing a hawkish stance.
The Bank of Japan (BoJ) is expected to raise its policy rate by 25 basis points to 1.25%, which would be its highest level in 31 years, but the market's focus is on Governor Ueda's press conference for any signals that may indicate further tightening.
USD/JPY is currently testing resistance at 156.13/50, and a break below 155.45 could expose lower levels of support at 154.47, 153.70, and 152.65/55.