Fed Rate Decision May Decide Yen's Fate Amid BOJ Meeting

The yen has strengthened to a 7-month high of 152.89 per dollar, with speculators turning net-long on the currency for the first time since February. The Federal Reserve's Wednesday rate decision is expected to impact the yen's gains, with a quarter-point hike already priced into markets. However, the Bank of Japan's decision to leave further hikes off the table could send dollar/yen back towards 157 to 160. Hedge funds have adjusted carry trade positioning, and the U.S. dollar index has held steady at 99.15 after two weeks of declines.