USD/JPY held above 158.00 in Thursday’s Asian session, extending a consolidation that has persisted since the start of the month as traders waited for next week’s central-bank meetings. The Federal Reserve delivers its rate decision on 28 October, followed by the Bank of Japan gathering on 29–30 October. A wide US–Japan yield gap and the BoJ’s cautious posture have supported the pair, while reports that officials are leaning against a back-to-back rate rise this month temper expectations of near-term tightening.
Central Bank Meetings and Policy Expectations
Counterweights remain in place. BoJ Governor Kazuo Ueda said underlying inflation is close to the 2% target, leaving room for a move as soon as December, while speculation of official action to support the yen has also curbed bearish positioning.
Market Influence and Technical Levels
The dollar has hovered near a three-week low amid lower US bond yields, though oil-price-driven inflation concerns and a rising geopolitical risk premium linked to Middle East tensions have limited USD weakness. Technically, resistance sits at the 100-day SMA of 159.39 and the 50.0% Fibonacci level at 158.48, with further levels at 159.80, 161.67 and 164.06; support is seen at 157.17, then 155.54 and 152.91.
