Yen Range-Bound Ahead of Fed and BoJ Policy Decisions

The Japanese Yen remains range-bound as investors await the Federal Reserve's monetary policy decision on Wednesday and the Bank of Japan's policy announcement on Friday.

At the time of writing, USD/JPY trades around 163.90, up 0.11% on the day, with markets looking for greater clarity on the outlook for both central banks.

The US Dollar Index (DXY) is edging slightly higher ahead of the Fed meeting, but market participants will closely watch for any clues on how long US inflation is expected to remain above the central bank's 2% target.

Strategists at BNP Paribas expect Japan's expansion to lose some momentum, projecting that annual GDP growth will stand at 0.8% in 2026, down from 1.1% in 2025.