The USD/JPY pair started the week within a narrow range trading but was biased to the upside, where the current market sentiment is generally still positive which added more pressure on the Japanese yen.
The US dollar is starting a busy week with the FOMC decision regarding in addition to the fourth quarter GDP, in which the dollar will determine its next move depending on the risk trend.
On the other hand, markets await the BOJ decision as well, as the yen traded in a narrow range with the beginning of the week, while any new action from the BOJ will have its toll on the Japanese currency.
The current market sentiment still supports the risk appetite, but we can say that investors are keeping their decisions on hold until the picture become clear after the central banks take their decisions.
On Tuesday at 04:00 GMT, the Bank of Japan will conclude its first meeting this year, where it’s expected that the BOJ will keep its interest rate unchanged while the stimulus programs could witness some adjustments.
At 15:00 GMT, the U.S. economy will issue the Richmond Fed Manufacturing Index for January, where it’s expected at 5.0 from the previous reading of 3.0.
Originally posted here
