USD/JPY grinds out a weekly close above 149 as BOJ looms

On Friday the higher US yields helped to support the USD/JPY all the way into the weekly close. The USD/JPY set that at above 149, which was some way above the lows seen much earlier in the week, around 146.50. The USD/JPY closed on Friday at 149.04. The price action was dictated by the conflicting dynamic of higher US yields and the prospect of a BOJ rate rise this week. However, it was the higher US yield element that won out ahead of the weekend. Of course, it could be a different story this week. That said, there was quite a bit of rhetoric from Japanese and BOJ officials, walking back on any significant change in policy tomorrow. As already noted, that decision will come at around 3.45am tomorrow and whatever happens, it is going to throw up some price action in the USD/JPY and major Yen crosses too. Overnight the USD/JPY has traded a range covered by 148.91 to 149.31. It is just now in the middle of that, trading at 149.16