This week, the Federal Open Market Committee and the Bank of Japan's monetary policy meeting are scheduled to take place. Attention will focus on US inflation trends as indicated by the US CPI data and movements in US Treasury yields near 5%. The Bank of Japan's 0.25% rate hike is widely considered certain, while the timing of the next hike is expected to be the key focus, with USD/JPY likely to target 150.
The FOMC will meet from 14 September this week, while the Bank of Japan's monetary policy meeting is also scheduled, so the market is expected to lack a clear direction. The previous week's US CPI data indicated accelerating inflation in the United States, and the 10-year US Treasury yield has been noted to be approaching 5%.
The Bank of Japan's 0.25% rate hike at this meeting is widely considered certain, while the key focus will be when the next rate hike will take place. There is a view that the yen could appreciate further if Governor Ueda (植田) hints at the possibility of consecutive rate hikes.
In that case, USD/JPY is expected to target 150. US interest rate trends and the Bank of Japan's future policy direction will be closely watched as factors that could determine the exchange rate's broad direction.