USD/JPY Steady Ahead of Fed and BoJ Rate Decisions

The Japanese Yen remains stable ahead of two crucial interest rate decisions this week. The USD/JPY pair is trading around 155.25 in early Asian session on Wednesday.

Markets expect the US Federal Reserve to raise its benchmark overnight interest rate by 25 bps to the 3.75%-4.00% range, which would be the first increase in three years. The Bank of Japan is also anticipated to hike its key policy interest rate by a quarter point to 1.25% from 1.00% at its meeting on Friday.

Fed Chairman Kevin Warsh's press conference after the rate decision could provide hints about the US interest rate outlook, and hawkish remarks from Fed policymakers may lift the USD against the JPY in the near term.