USD/JPY was quoted near 157 yen per dollar Monday as traders looked to policy meetings in Washington and Tokyo and U.S. inflation data that could shape rate differences between the economies.
At 4:11 a.m. ET (08:11 UTC) Monday, FXStreet put the pair at 157.13 yen per dollar. Its technical analysis marked 157.20 to 157.50 as resistance, an assessment from the outlet rather than an official market threshold.
MUFG Research’s Oct. 26 note said USD/JPY moved below 157 and then 156.50 early Oct. 23 before climbing back toward 157. The chart data was marked as of 03:00 UTC (12:00 JST) on Oct. 23. EconoTimes previously covered Thursday’s yen gains and partial retreat.
The Federal Reserve’s target range is 3.75% to 4.00%, following a 0.25-point increase Sept. 16. Japan’s latest setting is a guideline near 1.25% for the uncollateralized overnight call rate; the Bank of Japan (BOJ) announced it Sept. 18, effective Sept. 24.
Reuters reported expectations that the BOJ would leave its rate at 1.25% this week. Reuters and the Associated Press (AP) also reported expectations that the Fed would hold its range. Those are forecasts, not announced outcomes. AP said markets were leaning toward another Fed increase in December. Reuters cited Naomi Muguruma, chief bond strategist at Mitsubishi UFJ Morgan Stanley Securities, who said the BOJ would weigh incoming data and market conditions before choosing between a December increase and a January move. Reuters also noted that the BOJ’s June and September increases came closer together than its roughly twice-yearly pace in 2024 and 2025.
Reuters linked Japan’s inflation pressure to high energy costs and imports made more expensive by the weak yen. AP reported that analysts warned higher rates could raise borrowing costs for small and midsize businesses and mortgage holders.
The Fed meets Oct. 27-28, with a press conference scheduled for Oct. 28. The U.S. Bureau of Economic Analysis has scheduled its September Personal Income and Outlays report, which includes the Personal Consumption Expenditures (PCE) Price Index, for Oct. 29. The BOJ meets Oct. 29-30, and its schedule does not set an hour for the Oct. 30 policy statement.
