In the Tokyo market on the morning of 22 October 2026, dollar-yen traded flat in the low ¥158 range. With monetary policy meetings by the BOJ and FRB ahead, a wait-and-see stance has spread amid a lack of market catalysts.
In the Tokyo foreign exchange market on the morning of 22 October 2026, dollar-yen traded sideways in a range of ¥158.16–¥158.17, representing a slight decline in the yen against the previous day. With few trading catalysts, investors are increasingly taking a wait-and-see stance ahead of the BOJ's monetary policy meeting and the FRB's meeting. The pair had also traded in a ¥157.84–¥158.39 range the previous day, and conditions in which it is difficult for a clear direction to emerge have continued.
Lower US long-term interest rates are among the factors keeping dollar-yen range-bound. Dollar selling led the market against the backdrop of a decline in the US 10-year Treasury yield, while there were also periods of dollar buying on reports denying geopolitical-risk-related developments.
Expectations of a BOJ rate hike and yen-buying pressure are also restraining the market. While Deputy Governor Himino points to an inflation rate near 2%, the view is spreading that the BOJ will maintain its current policy without rushing into an additional rate hike. As the timing of a rate hike remains uncertain and the US-Japan interest-rate differential is still wide, the yen is not necessarily likely to strengthen in one direction.
The focus will now shift to the decisions and outlooks from the FRB and BOJ meetings. The FRB is scheduled to hold the FOMC on 27–28 October and announce its policy decision on the 28th, with clues on the pace of rate cuts in focus. The BOJ will hold its monetary policy meeting on 29–30 October and publish its outlook for economic activity and prices. Depending on the meeting results, the factors determining the yen's strength or weakness may change.