USD/JPY Tests 156.00 as BoJ Decision Looms
USD/JPY rose to around 156.00 after the Federal Reserve's 25 basis point rate hike, supporting the US dollar.
The Fed raised its benchmark rate to 4.00%, and markets expect another rate hike this year. Fed Chair Kevin Warsh highlighted inflation risks, reinforcing expectations that US rates may remain elevated for longer.
Traders initially pushed USD/JPY higher after the Federal Reserve's hawkish rate decision, but the pair pulled back before rebounding to test the 156.00 level. This key psychological level acts as a short-term pivot ahead of the Bank of Japan's September 18 policy decision.