Ella 
The yen remained under pressure against the dollar on Tuesday, near the 34-year low hit the previous day. The Bank of Japan has not provided many clues as to when it will raise interest rates further, while markets are currently pricing in the Fed not cutting rates until at least September. This indicates that the huge gap between the United States and Japan will remain for some time, which will become a key factor in continuing to weaken the yen.
Investors remained wary after the possibility emerged that Japanese authorities might intervene to support the domestic currency. Additionally, overall risk sentiment is weak as geopolitical tensions persist due to ongoing conflicts in the Middle East, providing little respite for yen bulls. On the other hand, the U.S. dollar (USD) rose to its highest level since early November last year on hawkish Fed expectations, suggesting that the USD/JPY pair’s upward path is the most favorable. Traders will now look to U.S. macro data and speeches from influential FOMC members such as Federal Reserve Chairman Jerome Powell for short-term trading opportunities.
