USD/JPY at Crossroads Ahead of BoJ Interest Rate Decision

The USD/JPY pair is trading just above 154.00 after Monday's session, which saw a 1.22% decline. The next few days will be crucial for the Japanese Yen, with key data releases scheduled tonight and in the coming week.

Tonight's release of Japanese wage data at 23:30 GMT is closely watched by the Bank of Japan (BoJ), which has made this figure a condition for further policy decisions. The BoJ is expected to raise interest rates in October, but the timing and magnitude of this move are uncertain.

The Federal Reserve's decision on September 16 will also be closely watched, with market pricing indicating a 59% chance of a quarter-point hike. In contrast, the BoJ has seen its quarter-point priced at close to 97%, making October the more likely time for a rate increase.