Yen Gains on Reduced Safe-Haven Flows Ahead of Fed and BoJ Decisions
The Japanese yen has strengthened against the US dollar due to reduced geopolitical tensions. This decrease in safe-haven demand for the greenback allowed the yen's value to rise.
Traders are now focusing on upcoming policy decisions from the Federal Reserve and the Bank of Japan, which could provide clearer direction for the USD/JPY pair.
A narrowing interest rate differential between the US and Japan is a key factor to watch. If the BoJ hints at a policy normalization, the yen could see further gains.