Dollar buying resumed following the FOMC's hawkish stance. USD/JPY extended its gains into the ¥156 range, while the market grew more cautious ahead of the BOJ meeting.
A video reviewing the previous day and outlining the outlook for today reported that the FOMC's hawkish stance helped drive renewed dollar buying.
USD/JPY responded to factors that were more hawkish than expected, extending its gains to near the ¥156 level. The possibility of additional rate hikes came into focus in the market.
The FOMC's policy decision and the Chair's press conference, together with the dot plot indicating the prospect of an additional rate hike during the year, prompted a more cautious outlook for the Japan-US interest-rate differential.
With the BOJ Monetary Policy Meeting (Day 1) ahead, these developments are attracting attention as a factor to watch going forward.