The Bank of Japan is widely expected to leave its policy rate unchanged, shifting the focus to whether it signals a December rate hike. The morning forecast range for USD/JPY is ¥157.000–¥158.800.
According to the morning USD/JPY forecast report, it is considered almost certain that the Bank of Japan will leave its policy rate at 1.25% at its Monetary Policy Meeting, with the focus on whether it lays the groundwork for a December rate hike. The market is already viewed as having priced in a rate hike at the December meeting, but depending on the content of the statement, the yen’s move will probably remain limited.
The forecast range for USD/JPY is ¥157.000–¥158.800. The previous day, USD/JPY opened slightly lower, rose at one point to around ¥158, then fell back to close lower against a backdrop of declining US long-term yields and lower oil prices. This morning, attention will focus on whether any signal of a December rate hike accompanying the Bank’s decision remains within market expectations.