USD/JPY Pair Edges Closer to 154.00 Amid Middle East Tensions and Fed Meeting
The USD/JPY pair is showing signs of life as it edges closer to the 154.00 mark, reversing some of its losses from last week's session.
This comes amidst growing tensions in the Middle East and ahead of key central bank meetings next week, with the US Federal Reserve (Fed) set to meet on September 15-16 and the Bank of Japan (BoJ) meeting on September 17-18.
The latest inflation figures from the US have reinforced market expectations that the Fed will raise borrowing costs on Wednesday, with a safe-haven US Dollar (USD) benefiting from the geopolitical risk premium.
The BoJ's policy tightening path may also continue to underpin the Japanese Yen (JPY), despite traders having fully priced in a 25-basis-point rate hike later this week and assigning a high probability of a follow-up move in December.