Anna 
As the European session begins on Monday, the Japanese Yen (JPY) remains under significant selling pressure, nearing a multi-decade low around the 154.00 level against the US Dollar (USD). The dovish stance of the Bank of Japan (BoJ), indicating a lack of urgency in policy normalization, continues to weigh heavily on the JPY. Despite recent warnings from Japanese authorities about potential market intervention to support the domestic currency, bullish sentiment prevails.
Additionally, the deteriorating risk sentiment amid the escalating Middle East crisis offers little relief to the safe-haven JPY. Meanwhile, the USD consolidates its recent gains, reaching its highest level since November.
Expectations of the Federal Reserve (Fed) delaying interest rate cuts contribute to the USD’s strength, maintaining a significant interest rate differential between the US and Japan. This dynamic further bolsters the USD/JPY pair.
