The morning USD/JPY outlook calls for range-bound trading to continue, with an expected range of ¥158.700–¥159.800. September rate-hike pricing is expected to be around 40% for the Fed and 90% for the BOJ.
According to the daily FX report, the morning outlook for USD/JPY is for range-bound trading to continue, with an expected range of ¥158.700–¥159.800. USD/JPY traded almost entirely within the range the previous day. The probability of a Fed rate hike in September is just under 40%, while BOJ rate-hike pricing is around 90%.
Looking ahead, the upper level to watch is expected to be around ¥159.78, the high for the month, while the downside is expected to be around ¥158.71, the low for the week. The market has priced in a high probability of a September rate hike, and the dollar is expected to remain range-bound.
Today’s scheduled events include a morning speech in Saitama by BOJ Deputy Governor Himino (氷見野), followed by a press conference in the afternoon. However, the high level of September rate-hike pricing is expected to limit the market impact.
The full report is available in the “外為どっとコム Report” provided by 外為どっとコム’s Research Institute.