USD/JPY Fluctuates Near 163.50 Amid Fed Rate Decision and Geopolitical Tensions

The USD/JPY exchange rate has been trading in a narrow range around 163.50, following the Federal Reserve's decision to keep interest rates unchanged.

Although three FOMC members voted in favor of a rate hike, Fed Chairman Kevin Warsh emphasized that this pause should not be seen as a rejection of further policy tightening.

The Bank of Japan is also expected to maintain its current interest rate on Friday, but may signal a possibility for future hikes to counter the yen's decline.