The greenback may gain versus Japanese yen if the statement from the FOMC's meeting this week that’s taking place on Tuesday and Wednesday is more hawkish than the previous one.

Some of the more hawkish FOMC members such as Philadelphia Fed President Charles Plosser will exercise their voting rights at the upcoming FOMC meeting. It's necessary to watch whether the tone of the FOMC's statement suggests that there are more inflation worries.

If the statement suggests that inflationary worries are increasing, yields on the US Treasuries will rise lifting up the pair USD/JPY.



Chart. H4 USD/JPY

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