Investors are closely watching the upcoming decisions by the Federal Reserve and the Bank of Japan, as they are expected to ignite volatility in the foreign exchange market, particularly for the USD/JPY currency pair.
The Federal Reserve is set to announce its decision on interest rates, which could impact the strength of the US dollar against the Japanese yen. Any hints at future rate hikes or changes in monetary policy could lead to sharp movements in the USD/JPY exchange rate.
Similarly, the Bank of Japan’s decision on its monetary policy could also influence the yen’s value against the US dollar. Any changes in interest rates or stimulus measures by the BoJ could lead to increased volatility in the currency pair.
Overall, investors are bracing for potential market fluctuations as they await the decisions from both central banks. Keep an eye on the USD/JPY exchange rate as these decisions could have a significant impact on the forex market.