Ella 
The Japanese yen fell for a third straight session against the U.S. dollar on Wednesday. USD/JPY strengthened as investors favored the greenback ahead of the Federal Reserve (Fed) decision and U.S. May inflation data due later in the North American trading session.
The yen may find support due to higher-than-expected Japanese Producer Price Index (PPI) data. The data showed that Japan’s producer prices rose 2.4% year-on-year in May, beating market expectations of 2.0%, which heightened market concerns that this could lead to higher consumer inflation.
The Bank of Japan is expected to keep its monetary policy unchanged on Friday. The interest rate divergence between the United States and Japan continues to weaken the yen (JPY), benefiting USD/JPY.
The U.S. Dollar Index (DXY), which measures the value of the U.S. dollar (USD) against six major currencies, remained strong as strong U.S. May jobs data reduced the probability of a September rate cut by the Federal Reserve. The CME FedWatch tool showed that the probability of a rate cut of at least 25 basis points by the Federal Reserve in September has fallen to 52% from 67% a week ago.
