USD/JPY gives back early gains ahead of BoJ-Fed monetary policy decision
- USD/JPY gives up initial gains and turns flat around 144.15, while safe-haven assets lose steam.
- Both the BoJ and the Fed are expected to leave interest rates at their current levels.
- Fed officials have already indicated that monetary policy adjustments are inappropriate until they get clarity on the economic outlook under Trump’s leadership.
The USD/JPY pair surrenders its early gains and flattens around 144.15 during European trading hours on Monday. The pair faces selling pressure as the US Dollar (USD) falls back after failing to extend Friday’s recovery move.
The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, retreats to near 98.00.
US Dollar PRICE Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the weakest against the Australian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.36% | -0.18% | -0.35% | -0.16% | -0.57% | -0.48% | -0.17% | |
| EUR | 0.36% | 0.07% | 0.00% | 0.21% | -0.08% | -0.12% | 0.20% | |
| GBP | 0.18% | -0.07% | -0.06% | 0.14% | -0.14% | -0.19% | 0.13% | |
| JPY | 0.35% | 0.00% | 0.06% | 0.19% | -0.52% | -0.50% | -0.23% | |
| CAD | 0.16% | -0.21% | -0.14% | -0.19% | -0.34% | -0.33% | -0.01% | |
| AUD | 0.57% | 0.08% | 0.14% | 0.52% | 0.34% | -0.04% | 0.28% | |
| NZD | 0.48% | 0.12% | 0.19% | 0.50% | 0.33% | 0.04% | 0.32% | |
| CHF | 0.17% | -0.20% | -0.13% | 0.23% | 0.01% | -0.28% | -0.32% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
Meanwhile, the demand of safe-have assets, such as the US Dollar and the Japanese Yen (JPY), has diminished despite tensions between Iran and Israel have escalated.
This week, the major triggers for the pair will be monetary policy announcements by the Bank of Japan (BoJ) on Tuesday and the Federal Reserve (Fed) on Wednesday, respectively.
The BoJ is expected to leave interest rates steady at 0.5% as officials have expressed growth concerns amid global uncertainty due to trade war risk stemming from the tariff policy imposed by United States (US) President Donald Trump.
Simultaneously, the Fed is also expected to hold borrowing rates steady in the current range of 4.25%-4.50% as officials have stated that they need clarity on the new economic policies announced by US President Trump before making any monetary policy adjustments.
Investors will closely monitor the Fed’s dot plot, which shows where officials see interest rates heading in the medium and long term.
Economic Indicator
BoJ Interest Rate Decision
The Bank of Japan (BoJ) announces its interest rate decision after each of the Bank’s eight scheduled annual meetings. Generally, if the BoJ is hawkish about the inflationary outlook of the economy and raises interest rates it is bullish for the Japanese Yen (JPY). Likewise, if the BoJ has a dovish view on the Japanese economy and keeps interest rates unchanged, or cuts them, it is usually bearish for JPY.
Read more.Next release: Tue Jun 17, 2025 03:00
Frequency: Irregular
Consensus: 0.5%
Previous: 0.5%
Source: Bank of Japan
Author
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
