The Australian dollar/Japanese yen is expected to trade range-bound this week. Although the Bank of Japan's policy meeting will draw attention, its impact is likely to be limited. Developments from 26–30 October will be the focus.
This week's outlook calls for the Australian dollar/Japanese yen to trade range-bound, with limited movement possible in financial markets. Moves in major currency pairs are expected to be limited, with some pointing to a lack of significant market catalysts.
Market attention will increase because the Bank of Japan is scheduled to hold a monetary policy meeting. However, the policy rate is currently expected to remain unchanged, and many expect the meeting itself to have a limited impact.
Market reaction could vary depending on the statement and the Bank of Japan's views after the meeting, but few developments that would support expectations of a major outcome have been reported at this point.