The USDJPY exchange rate could have a volatile week with the BOJ and Fed rate decisions.
The price of USDJPY trades at 144.11 with the support below at 142.40 coming into play. Further support is below at the 140 level.
Alongside the Bank of Japan and Federal Reserve meetings, the Japanese yen could see investment flows from safe haven demand as tensions return to the Middle East.
Tuesday morning is the Bank of Japan meeting with the press conference set for 2:30pm HKT. The Bank of Japan will not raise another interest rate again this year due to uncertainty over US tariff policy, according to a Reuters poll of economists who expect the next increase in early 2026.
None of the 60 economists surveyed in the June 2-10 poll expect the BOJ to raise rates at the policy meeting on June 16-17. 52% of economists expect borrowing costs to stay at 0.50% at year-end.
The next important data point will be Wednesday’s Fed meeting, where President Trump is expected to add pressure to his goal for a rate cut. Trump renewed his demand for the central bank cut by 100 basis points or 1% following new data on Wednesday on consumer inflation.
Trump referred to the May Consumer Price Index as a “great” number and said that the “Fed should reduce one full point”.
That will continue to be a talking point and it is possible that a cut of only 25bps at the most, could stir up tensions between Trump and Jerome Powell.
