USD/JPY Hits One-Week High as Traders Await Fed and BoJ Decisions
The Japanese Yen remains depressed near its one-week low against the US Dollar as traders await the Federal Reserve's decision and the Bank of Japan's meeting.
Despite reaching a one-week high on Wednesday, the USD/JPY pair lacks follow-through buying due to trader hesitation ahead of the key central bank events.
The US Federal Reserve is widely expected to raise interest rates by 25 basis points today, while investors will closely watch updated economic projections and Chair Kevin Warsh's remarks for cues about future policy paths.
A more hawkish repricing of the Bank of Japan's normalization path has fully priced in a 25 bps rate hike at its meeting on Friday, potentially holding back bearish traders from placing aggressive bets on the Japanese Yen.