Ella 
The Japanese yen (JPY) rose against the U.S. dollar in Asia on Wednesday, rebounding from a one-week low hit the previous day. Bloomberg reported, citing people familiar with the matter, that the Bank of Japan (BOJ) is considering raising interest rates in March, although the outcome is difficult to predict and the final decision will be made after officials see the preliminary results of spring wage negotiations. This is therefore seen as a key factor supporting the Japanese yen and further weighing on the USD/JPY pair amid a slight decline in the US dollar.
Still, dovish comments from Bank of Japan Governor Kazuo Ueda overnight may have cooled bets on an imminent rate hike. Beyond that, generally positive risk sentiment may inhibit traders from making aggressive bullish bets on the safe-haven yen. In addition, U.S. consumer inflation data released on Tuesday were stronger than expected, indicating that the Federal Reserve (FED) may delay easing monetary policy. This resulted in a nice rebound in US Treasury yields overnight, which should boost USD/JPY and prevent USD/JPY from falling lower.
