Forex
USD/JPY Forecast Hangs in Balance Ahead of Fed and BoJ Decisions
The USD/JPY pair is trading around the pivotal 155.00 handle ahead of the Federal Reserve's rate decision, which could impact market sentiment and drive price action.
Rising US bond yields and elevated oil prices have shifted the market's focus back towards inflation and a more hawkish Fed rate hike, encouraging investors to rebuild dollar-yen positions.
The Bank of Japan is expected to raise rates by 25 basis points on Friday, but much of that move is already reflected in market pricing. The yen's reaction may depend on any guidance from Governor Ueda.