Dollar Consolidates, USD/JPY Stalls at 162 Before FOMC

The dollar drifted through Monday's session, holding inside the ranges set after last week's volatile swings. Traders turned their attention to the Federal Reserve's March meeting minutes, due Wednesday.

USD/JPY consolidated near 162 after falling back from multi-year highs. The pair printed a Piercing Line candlestick pattern on the daily chart, a setup that often signals a short-term bottom after a pullback. A retest of the 162.60–162.90 zone is possible if the dollar holds above 160.50, a level that capped the downside in recent sessions. The wide U.S.-Japan rate spread pressures the yen. Japanese intervention risk caps the dollar's upside above 163.

USD/CAD held inside a tight 1.4140–1.4250 band. The pair has been rangebound for several days, with the ceiling at 1.4250 and support near 1.4140. A break above that ceiling targets the next resistance zone around 1.4300–1.4400. Below 1.4140, the next support sits at 1.4020–1.4080.

The FOMC minutes are scheduled for release at 2 p.m. ET Wednesday. The document will offer a fuller picture of the internal debate at the March meeting, including the Fed's view on inflation and the likely path for rates.