Japanese Yen slips as Oil lifts yields ahead of the Fed
USD/JPY trades near 155.20 on Tuesday, rising for a second straight day and pulling away from the roughly seven-month low it set last week. A firmer US Dollar (USD) is doing the work, helped by a sharp jump in Oil that has pushed US Treasury yields higher. West Texas Intermediate (WTI) Oil has surged more than 3% on Tuesday, and higher energy costs feed straight into inflation expectations, lifting yields and the safe-haven Dollar. The Federal Open Market Committee (FOMC) decides on Wednesday. Markets are leaning toward a 25 basis points (bps) rise to 3.75%-4.00%, the first move after five straight holds, with US Retail Sales for August due the same morning. Firm labor figures, including a pickup in the ADP employment gauge on its four-week average, have added to the hawkish case. A hike paired with guidance for more would extend the Dollars bounce. The Bank of Japan (BoJ) announces its policy decision on Friday, and markets widely expect a hike, with rates expected to move to 1.25%. Strong Japanese wage and growth data have firmed those bets, and speculators have trimmed their positions against the Yen since the summers intervention. Short-term technical analysis: On the 4-hour chart, USD/JPY trades at 155.18. The pair holds









