The yen weakened slightly after a brief rally, as the dollar steadied following the Federal Reserve’s decision to hold interest rates unchanged.
USD/JPY traded near 163.50 on Thursday, paring earlier gains as the yen retreated from its recent strengthening. The pair found temporary equilibrium after a broader dollar decline post-Fed meeting, where policymakers opted to maintain current interest rates.
Prior to the Fed’s announcement, the yen had advanced as markets priced in potential rate cuts later this year. The dollar’s pullback provided brief support for the yen, though the currency failed to sustain momentum above key levels.
Traders are now assessing multiple factors, including U.S. economic data and Bank of Japan policy signals, for further direction in the pair.