The post Japanese Yen stays weak near one-week low as traders eyes Fed, BoJ appeared on BitcoinEthereumNews.com.
The USD/JPY pair attracts some buyers for the third straight day and touches a one-week high, around the 155.45-155.50 region, during the Asian session on Wednesday. Spot prices, however, lack follow-through as traders seem hesitant ahead of the key central bank event. The US Federal Reserve (Fed) concludes its September policy meeting today and is widely expected to raise interest rates by 25 basis points (bps). Investors, however, will keep a close eye on updated economic projections, which include the so-called dot plot, and Chair Kevin Warsh’s remarks during the post-meeting press conference for more cues about the future policy path. The outlook, in turn, will play a key role in influencing the US Dollar (USD) and provide some impetus to the USD/JPY pair. The immediate market reaction, however, is more likely to remain limited amid a more hawkish repricing of the Bank of Japan’s (BoJ) normalization path. In fact, traders now seem to have fully priced in a 25 bps rate hike at the end of a two-day meeting on Friday and see a greater possibility of a follow-up move in December. This, in turn, might hold back bearish traders from placing aggressive bets on the Japanese Yen (JPY) and keep a lid on any meaningful appreciating move for the USD/JPY pair. Meanwhile, investors remain worried about energy-driven inflation risks, which underpin prospects for further tightening by the Fed. Adding to this, a surge in public and corporate borrowing led to an extended global bond selloff, pushing the yield on the benchmark 10-year US Treasury bond beyond the 5% threshold for the first time since 2023 and to its highest level since 2007. This, along with geopolitical risks, might continue to underpin the Greenback and act as a tailwind for the USD/JPY pair. USD/JPY 4-hour chart Technical Analysis The…