USD/JPY Soars as Markets Anticipate Bank of Japan Rate Hike

The USD/JPY currency pair has seen an increase following the recent FOMC meeting, where front-end US Treasury yields moved higher and the US dollar strengthened.

This led to attention shifting towards the upcoming Bank of Japan decision tomorrow, with markets positioned for a 25-basis point BoJ increase that would take the policy rate to 1.25%.

The focus is now on Governor Ueda's guidance for the period beyond September and the pace of normalization in the context of still-elevated inflation.