USD/JPY Reaches the 155-Yen Level—Will It Continue to Rise After the FOMC Meeting?

USD/JPY Reaches the 155-Yen Level—Will It Continue to Rise After the FOMC Meeting?

16.09.2026 New

In the U.S. currency market yesterday, the dollar rose against the yen. The dollar was supported by rising crude oil prices and higher U.S. long-term interest rates, as well as the fact that the probability of a 25-basis-point rate hike at today’s FOMC meeting has risen to about 90 percent.The USD/JPY pair rose to the 155-yen level yesterday and has extended its gains to 155.43 yen during today’s Asian trading session. On the other hand, with strong speculation that the Bank of Japan will implement an additional rate hike this week, the interest rate differential between Japan and the U.S. alone is unlikely to drive the dollar higher and the yen lower in a one-sided manner.We will be watching to see whether the pair breaks above the 155.50 yen level or falls below 155 yen to consolidate.

Among European currencies, the euro faced resistance against the dollar. The euro/dollar pair has been trading in the low 1.15 range; while expectations of further interest rate hikes by the ECB persist, expectations of U.S. monetary tightening and a strong dollar are currently weighing on the euro.Even if the FOMC raises rates at today’s meeting, the dollar could pull back if the Fed signals a cautious stance regarding the future pace of rate hikes. The key focus will likely be on whether the euro can hold around $1.1520 on the downside and whether it can recover to $1.1600 in a rebound.

Today’s economic data includes the Eurozone’s July industrial production figures, scheduled for release at 6:00 p.m. Market expectations are for a month-over-month decline of 0.2% and a year-over-year decline of 0.1%.At 9:30 p.m., U.S. August retail sales will be released, with the market expecting a 0.8% increase month-over-month and a 0.5% increase in retail sales excluding autos.At 11:00 p.m., the U.S. September NAHB Housing Market Index is due, followed by the FOMC policy rate decision at 3:00 a.m. and a press conference by Fed Chair Warsh at 3:30 a.m.Since the rate hike itself is largely priced in, the extent to which the press conference signals future rate hikes is likely to determine the next direction of the U.S. dollar.