Ella 
The yen continued to fall amid divergence of policy expectations from the Bank of Japan and the Federal Reserve.
Recent intervention warnings from Japanese authorities have provided the yen with little respite.
Traders are now looking to the U.S. first-quarter GDP report to provide some impetus ahead of a Bank of Japan meeting on Friday.
The Japanese yen (JPY) fell further below the psychological 155.00 mark during Thursday’s Asian trading session and fell to its lowest level since June 1990. The wide interest rate differential between Japan and the United States is considered a key factor that continues to weaken the yen. However, the move heightens the risk that Japanese authorities may intervene, which in turn could prevent yen bears from establishing new bets. Traders may also choose to wait and see ahead of Friday’s key monetary policy decision from the Bank of Japan (BoJ).
The Bank of Japan is widely expected to keep policy settings and bond purchases unchanged after raising interest rates in March for the first time since 2007. In contrast, investors appear to believe the Federal Reserve may delay a rate cut as inflation persists, which remains a support factor for higher U.S. Treasury yields and a tailwind for the dollar. This, in turn, suggests that the direction of least resistance for the USD/JPY pair remains to the upside.
