With the FOMC and the Bank of Japan monetary policy meeting scheduled for tonight, USD/JPY is expected to lack direction around ¥157. The pair continued to trade in a narrow range near ¥157 in the Tokyo market.
In the Tokyo market, USD/JPY rose to around ¥157.21 ahead of the fixing before weakening to around ¥156.65 before noon. Against a backdrop of elevated oil prices, the pair continued to move without a clear direction.
In overseas markets, the US FOMC is scheduled for 27–28 October and the Bank of Japan monetary policy meeting for 29–30 October. Markets largely expect both Japan and the US to leave interest rates unchanged. The focus is likely to be on any indication of a rate hike at the next meeting in December.
Tonight's key events include the release of Germany's Ifo business climate index for October and a $69 billion US two-year Treasury auction. The presence or absence of market-moving developments from these events could affect USD/JPY.
Technical chart analysis puts the projected USD/JPY range at ¥156.300–157.800. On the 60-minute chart, the pair rebounded after briefly falling to around ¥156.08. A break above resistance around ¥157.20–157.40 could trigger a more active move.