Sept 20 (Reuters) - USD/JPY rose on Tuesday on news that Russian-controlled regions in Ukraine planned to hold referendums on joining Russia, adding safe-haven flows to the dollar's case for returning to this month's 24-year high of 144.99.
Traders are also wary before the conclusion on Wednesday of the Fed's two-day meeting, which is expected to deliver a 75bp hike, exacerbating the rates divergence pulling USD/JPY higher and testing Japanese resolve to limit yen weakness.
The BoJ is expected to remain accommodative even after data showing Japanese inflation rose to 3% in August, though core-core held below the BoJ's 2% inflation target at 1.6%.
Tuesday's rise above 143.80 hints that USD/JPY bulls may be gearing up for a test of 24-year highs at 144.99.
A break above there would put the August 1998 high at 147.63 in focus and open the way for a test of key psychological resistance at 150, and likely start a new round of BoJ intervention talk.
For more click on FXBUZ
JPY Chart: https://tmsnrt.rs/3qTRDZS
(Paul Spirgel is a Reuters market analyst. The views expressed are his own.)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.