USD/JPY is expected to remain in the ¥157.50–¥158.50 range, with trading centered around ¥158.00. With few market drivers during the Federal Reserve's blackout period, USD/JPY is expected to remain focused around ¥158.00.
The market has lacked clear direction this week, as there have been few US economic data releases and the blackout period ahead of the FOMC has begun. USD/JPY is expected to trade mainly in the ¥157.50–¥158.50 range.
Dollar buying temporarily strengthened when last week's closely watched US CPI came in above expectations, but USD/JPY failed to break into the ¥159 range, highlighting resistance just below ¥159. At the same time, buying driven by the US-Japan interest rate differential has provided support on the downside.
With the rise in crude oil prices pausing following the decision to temporarily suspend US-Russia sanctions, the dollar's broader upward momentum is beginning to ease, and trading around ¥158 may become heavier. In the Tokyo market, USD/JPY reached around ¥158 before rebounding to ¥158.15.