Will the U.S. dollar, which has risen against the yen, weaken following the FOMC meeting? Market participants are watching price movements closely.

Will the U.S. dollar, which has risen against the yen, weaken following the FOMC meeting? Market participants are watching price movements closely.

10.12.2025

In yesterday’s U.S. currency trading, the U.S. dollar rose against the yen ahead of today’s FOMC meeting. The USD/JPY pair climbed from 155.732 to 156.956. It surged to the +3σ level of the hourly Bollinger Bands, and the RSI rose from 59 to 77.On the 4-hour chart, a band walk along the +2σ line of the Bollinger Bands is observed, while the daily chart shows a third consecutive day of gains, offsetting the losses from the previous 10 trading days.

Among European currencies, the pound fell against the U.S. dollar. The GBP/USD pair dropped from 1.3354 to 1.3287. On the hourly chart, the price fell from the +3σ to the -3σ of the Bollinger Bands. On the 4-hour chart, the price has moved from above the 20-period moving average (MA) to below it, while on the daily chart, it is retesting the resistance zone near the 200-period simple moving average (SMA). Notably, during today’s Asian trading session, the price has resumed its upward movement.

Today’s schedule includes the Japan Domestic Corporate Goods Price Index at 8:50, remarks by ECB President Lagarde at 19:55, the U.S. MBA Mortgage Applications Index at 21:00, the U.S. Third-Quarter Employment Cost Index at 22:30, the Bank of Canada’s policy rate decision and statement at 23:45, a press conference by Bank of Canada Governor McClem at 24:30, U.S. weekly crude oil inventories,at 28:00: U.S. Budget Balance, U.S. FOMC Policy Rate and Statement Release; at 28:30: U.S. Fed Chair Powell Press Conference; and at 6:45 the following day: NZ Q3 Manufacturing Sales. We should watch closely for price movements immediately following these releases to see if the U.S. dollar, which has been rising against the yen, will weaken due to the FOMC.