USD/JPY range-bound near 163.90 ahead of Fed, BoJ decisions
The yen traded in a narrow range as markets await policy decisions from the Federal Reserve and Bank of Japan, with both expected to hold rates but strike a hawkish tone.
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USD/JPY was little changed on Tuesday, hovering around 163.90, as traders refrained from large bets before key central bank meetings later this week.
Investors expect the Federal Reserve to keep rates steady on Wednesday, but its dot plot and commentary will be scrutinized for hints on the rate outlook. Similarly, the Bank of Japan is seen holding policy on Friday, though recent wage data may fuel speculation of a future hike.
- USD/JPY trades at 163.90, up 0.11% on the day.
- Both central banks are anticipated to maintain a hawkish bias despite holding rates.
- The cautious mood kept the pair within a tight range.
Source: FXStreet Forex News