Markets are expected to remain on the sidelines today ahead of the Bank of Japan's monetary policy meeting announcement. In the previous session, USD/JPY at times recovered toward 156.
Ahead of today's announcement from the Bank of Japan's monetary policy meeting, a rate hike is widely regarded as almost certain, while the focus is on how signals of further hikes will be presented. Attention is also focused on the statement and the content of Governor Kuroda (黒田)'s press conference, and markets are expected to continue avoiding major directional moves until the meeting.
In the Tokyo session, USD/JPY at times fell to the upper 155s and is expected to trade near 156 depending on movements in US long-term yields and crude oil prices. Compared with the previous session's New York trading, markets are expected to remain chiefly on the sidelines ahead of the meeting.
EUR/USD at times recovered to the 1.15s in the New York session, but is still expected to remain range-bound in the 1.14s. EUR/JPY rose from the mid-178s to the low 179s in the New York session and is expected to trade near 179 today.
GBP/USD fell to the upper 1.33s in the New York session and is expected to remain capped today, centered around the 1.3350s. GBP/JPY recovered to around 208 in the New York session, but is expected to continue trading near 208.