Home›Forex›Major Pairs›USD/JPY hovers near 163.50 as Fed debate and BOJ focus…

USD/JPY hovers near 163.50 as Fed debate and BOJ focus drive trade

The yen’s pullback follows the Fed holding rates steady despite three dissenters, while the Bank of Japan is expected to keep rates unchanged but maintain a hawkish signal.

Reported · Written up by our desk · Major Pairs

USD/JPY was held near 163.50 on Thursday, with the yen retreating slightly after strengthening the prior session, according to Action Forex.

The pair’s performance reflected a broader dollar decline after the Federal Reserve kept interest rates unchanged, even as three FOMC members voted in favor of a rate hike. Fed Chairman Kevin Warsh also emphasized that the pause should not be read as an end to further policy tightening, and that future decisions will remain data-dependent.

Markets are now focused on the Bank of Japan’s meeting on Friday, when rates are expected to be left unchanged but with signaling that further hikes remain possible to help contain the yen’s decline. Action Forex also noted that Japanese verbal interventions so far have provided limited relief, with the BOJ offering no clear guidance on timing for its next move.

Geopolitical risk also resurfaced in the trading backdrop, with media reports saying the United States resumed airstrikes on Iran after attacks on American forces in the region. Technically, the article described USD/JPY consolidating around 163.60, with chart signals suggesting a potential move higher toward 163.60, then beyond.

Latest closeUSD/JPY 163.42 ▼0.2%

More like this

Sources