The USD/JPY pair is hovering around 147.75, down 0.08% on the day, as it waits for the Federal Reserve to decide on interest rates.

According to the most recent figures from the Ministry of Finance of Japan, the country’s August Balance of Trade came in at -930.5 billion dollars, which was worse than the forecast of -659.1 billion dollars. Exports, meanwhile, came in lower than predicted at -1.7%, coming in at -0.8% YoY vs -0.3% previously. Imports increased from -13.6% to -17.8%, exceeding the forecast of -19.4%.

Japan’s top currency diplomat, Masato Kanda, reassured markets that authorities are responding to foreign exchange actions responsibly. The Bank of Japan is set to make a decision on interest rates, with markets anticipating Governor Kazuo Ueda’s news conference.

The US dollar and the USD/JPY pair may be affected by the Federal Reserve’s announcement of a two-day monetary policy meeting, which is likely to maintain interest rates in the 5.25% to 5.5% range.

The Fed meeting decision will be watched by markets on Wednesday at 18:00 GMT. The BoJ will make its monetary policy announcement on Friday. These occurrences could increase market volatility and provide the USD/JPY pair with a clear direction.

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