Forex

USD/JPY Volatility Expected Ahead of Fed and BOJ Policy Meetings

Guavy AI Editorial Team Published September 14, 2026

Instruments

USD JPY

The USD/JPY pair has been in a state of flux ahead of key central bank meetings, with market expectations and policy decisions from the Federal Reserve and Bank of Japan taking center stage.

The exchange rate strengthened slightly during the Asian session on Monday, moving back towards the 154.00 level and partially recovering last Friday's losses.

However, overall trends indicate that USD/JPY remains within a consolidation range formed over the past week and is not far from its nearly seven-month low touched last Tuesday, suggesting caution ahead of the central bank meetings.

The Federal Reserve will hold its policy meeting on September 15-16, while the Bank of Japan (BOJ) is scheduled to announce its interest rate decision on September 17-18. Shifts in these two central banks' policy directions will directly impact the US-Japan interest rate differential and may determine the next phase of the USD/JPY trend.

USD/JPY Volatility Expected Ahead of Fed and BOJ Policy Meetings

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