Dollar Holds Above 100 as BOJ and Global Rate Decisions Drive FX Volatility

The US Dollar remains firmly positioned above the 100 level as currency markets digest the latest Federal Reserve decision and shift their attention toward the Bank of Japan. The Dollar Index is trading around the 100 area after the Federal Reserve raised its benchmark interest rate by 25 basis points to a 3.75%-4.00% target range. The Fed's updated projections have also kept expectations for another possible rate increase later in 2026 in focus. USD/JPY remains close to 156.00 as the stronger Dollar continues to pressure the Japanese Yen. However, the Bank of Japan's upcoming policy decision could create a sharp change in direction if policymakers provide stronger guidance on future rate increases. EUR/USD has moved toward the 1.1450 area as the Dollar's renewed strength weighs on the Euro. Traders are watching whether the pair can defend the 1.1400-1.1450 support region during the current US Dollar rally. The latest move in global bond yields is another important FX driver. Higher US Treasury yields can continue to support the Dollar, while any decline in yields could encourage traders to reduce long-Dollar positions. MarketMindFX View: The 100.00 area remains the key psychological zone for the Dollar Index. For USD/JPY, 156.00 is the immediate resistance area, while 155.00 and 154.50 are important support levels. EUR/USD needs to stabilize above 1.1450 to reduce near-term downside pressure. Key Levels: DXY Resistance: 100.50, 101.00 DXY Support: 100.00, 99.50 USD/JPY Resistance: 156.00, 157.00 USD/JPY Support: 155.00, 154.50 EUR/USD Resistance: 1.1500, 1.1550 EUR/USD Support: 1.1450, 1.1400 Traders should monitor the Bank of Japan decision, Japanese bond yields, US Treasury yields and further Federal Reserve guidance for the next major FX move. Source: MarketMindFX Desk, September 17, 2026.