USD/JPY Stalls Near 155.50 as Fed and BOJ Decisions Collide

USD/JPY is entering a high-volatility stretch with the Federal Reserve and Bank of Japan both in focus. The pair climbed to around 155.50 on Wednesday, its highest level in roughly a week, but follow-through buying has been limited ahead of the Fed decision. Markets are widely expecting the Federal Reserve to raise rates by 25 basis points today. Because much of that move is already reflected in pricing, the bigger FX catalyst may be the Fed's guidance on the path of future policy. The Japanese yen has another major event ahead. The Bank of Japan is expected to raise its policy rate to 1.25% on Friday, a 31-year high, as higher oil and import costs keep inflation risks elevated. Any stronger-than-expected guidance from Governor Ueda could support the yen and limit USD/JPY upside. MarketMindFX View: The 155.50 area is becoming an important near-term resistance zone. A sustained break above it could keep the dollar supported toward 156.00, while a move back below 154.50 would signal that yen buyers are regaining control. The Fed's projections and the BOJ's communication are likely to determine whether the pair extends higher or reverses. Key Levels: USD/JPY resistance: 155.50, 156.00 USD/JPY support: 154.50, 153.50 Oil remains an additional variable. Brent is still above $100 per barrel, keeping inflation and bond yields elevated and complicating the outlook for both central banks. Source: Reuters and FXStreet, September 16, 2026. MarketMindFX analysis.