USD/JPY remains capped below 152.50 ahead of Fed and BoJ decisions

• The US Dollar bounces up from the 152.00 area but remains capped below 152.50.
• Investors are bidding their time ahead of the Fed and BoJ monetary policy decisions.
• US Secretary Scott Bessent has shown his support for the BoJ's independence.

The Greenback is trimming some losses against the Japanese Yen on Wednesday, yet with upside attempts limited below the 152.50 level so far. Investors are wary of placing US Dollar directional bets, awaiting the outcome of the Federal Reserve monetary policy meeting, due on Wednesday at 118:00 GMT.

The Fed is widely expected to lower rates by 25 basis points for the second consecutive time, lowering the Fed Funds rate to the 3.75% - 4.0% range. With this in mind, investors will be looking for clues to confirm market expectations of a further interest rate cut in December.

Beyond that, the US Central Bank might also announce the end of its balance sheet reduction, the so-called quantitative tightening program, amid growing concerns that credit conditions might have deteriorated too much.

The Bank of Japan, on the other side, is likely to keep interest rates unchanged at a 0.5% rate and hint at a 25 basis points rate hike, probably in December. US Treasury Secretary, Scott Bessent, has given a further boost to this view, stating that the central bank's independence is key to avoiding excessive currency volatility, adding pressure for the BoJ to keep tightening its monetary policy.