USD/JPY hovers near 158 ahead of Fed and Bank of Japan meetings, with Tokyo intervention risk in focus
The USD/JPY pair trades around 158 on October 27, ahead of the Federal Reserve and Bank of Japan meetings. Markets do not expect rate hikes in October, but services inflation in Japan, with services producer prices up 3.7% year on year, strengthens the case for further tightening. The BoJ would keep rates at 1.25% and a hike to 1.50% in December remains a possibility. Finance Minister Satsuki Katayama reiterated that the government is watching the market and will act if necessary.













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