USD/JPY at Fresh Multi-Decade Highs: Can It Extend Further?
The USD/JPY pair has broken through to fresh multi-decade highs after a textbook breakout from a symmetrical triangle, but traders are now wondering if it can extend further.
Key events this week include policy decisions from the Federal Reserve and Bank of Japan, as well as important inflation, growth, and labor market data from both economies.
The Fed's interest rate decision on Wednesday is the most critical event for USD/JPY traders, with overnight index swaps implying a one-in-three chance of a 25bp rate hike. However, the policy statement and Kevin Warsh's press conference will provide insight into the FOMC's thinking, but it may only fuel volatility.
Meanwhile, the Bank of Japan's policy decision on Thursday could prove equally important for near-term directional risk in USD/JPY, with no change in the policy rate expected. The focus will be on updated forecasts and Governor Kazuo Ueda's press conference.