Anna 
The Japanese Yen (JPY) exhibits slight fluctuations between modest gains and losses against its American counterpart as the European session approaches on Thursday. Despite remaining within reach of a two-week high established the previous day, the JPY faces headwinds amid a positive tone in US equity futures, supporting a bullish US Dollar (USD) following the Federal Reserve’s (Fed) less dovish outlook on Wednesday.
However, the JPY’s safe-haven appeal persists due to concerns about the escalating conflicts in the Middle East, potentially triggering a broader war, coupled with ongoing economic challenges in China. The Bank of Japan’s (BoJ) recent hawkish stance further bolsters the JPY’s status as a relative safe-haven. Additionally, the narrowing of the US-Japan rate differential resulting from the decline in US Treasury bond yields contributes to the support for the JPY.
Despite these factors, the USD/JPY pair struggles to extend gains beyond the overnight bounce from the 146.00 mark. Traders remain cautious, monitoring geopolitical developments and economic indicators, with the US ISM Manufacturing PMI anticipated to provide short-term trading opportunities.
