AT Global Markets: USD/JPY May Top 158 Before BOJ Decision

The call is less about the level than about the sequencing: a hawkish Fed framing is being used to argue that the recent yen pullback ran too far, ahead of a BOJ decision that could cut either way. That puts the BOJ's communication, not the Fed, at the centre of the next move in the pair. Whether the pre-decision drift toward 158 actually materialises, and how the BOJ frames its own stance on Friday, is the open question.