USD/JPY has risen to the ¥156 level, renewing concerns about the risk of yen weakness, while BOJ policy developments remain the focus. The 17 September issue reviews the outlook and the market's key areas of attention.
Following yesterday's FOMC decision to raise US interest rates by 25 bp, which led to broad-based dollar strength, USD/JPY rose to around the upper ¥156 level. While market expectations for an additional rate hike in 2026 have strengthened, some observers have suggested that the period of correction in yen weakness may already be over.
With the BOJ's monetary policy announcement due the following day, and the interest-rate differential between Japan and the US unlikely to narrow by around 1 bp, the view was expressed that whether the BOJ proceeds with an additional rate hike will be a key turning point for the yen's future direction.
In Wednesday's economic developments, on 16 September, UK CPI, US retail sales and developments at the Federal Reserve were cited as market factors, while movements in major indicators across the equity, bond and commodity markets were also reported. The USD/JPY outlook suggested that the correction in yen weakness may be approaching its final stages.
Events related to consumer prices in Japan, Australia and the UK, as well as US initial jobless claims, were among the indicators attracting attention, and range monitoring is expected to continue.