The Bank of Japan interest rate decision is on the horizon, with rates expected to remain at 0.75%. Recent price action shows sensitivity to policy signals and global risks. Japan’s hawkish BoJ clashes with expansionary fiscal policy, weighing on the yen. Safe-haven flows offer temporary support amid geopolitical tensions. USD/JPY near critical intervention levels, with risks of sharp drops. After the BoJ decision, a hawkish tone could strengthen the yen, while a dovish message may weaken it further. The yen’s importance in global markets lies in carry trades, making it a key player in broader risk assets. Markets brace for volatility as the yen navigates a complex mix of factors.

Read more at Investing.com: USD/JPY in Focus as Bank of Japan Decision Approaches