Fundamental Market Analysis for September 18, 2026 — USDJPY
Event to watch today:
09:30 EET. JPY — Bank of Japan Press Conference
USDJPY:
A month without swaps on majors!
The Bank of Japan raised its rate from 1.00% to 1.25%, the highest level in 31 years. However, the widely expected decision failed to provide sustained support for the yen, and USD/JPY remained above 156.
The US–Japan interest rate gap has narrowed but remains significant. With the Fed raising rates to 3.75–4.00%, carry trades continue to support the dollar unless the Bank of Japan signals faster tightening.
Further policy normalization and concerns over yen weakness limit the pair’s upside. Still, with the BoJ hike largely priced in and US rates remaining higher, the fundamental outlook favors moderate USD/JPY growth.
Trade idea: BUY 156.20, SL 155.80, TP 157.20
