Ella 
In the Asian market on Wednesday, the yen continued its consolidation trend, with the yen still limited to a one-week range against the US dollar. The recent break below the psychological 150.00 mark has prompted some verbal intervention from the Japanese authorities, which, coupled with cautious market sentiment, has supported the risk-off trend in the Japanese yen. Meanwhile, expectations that the Federal Reserve will initiate interest rate cuts in the coming months have put dollar bulls on the defensive near the two-week low hit on Tuesday, further weighing on USD/JPY.
Still, Japan’s economy remains in recession, adding to the uncertainty over when the Bank of Japan (BoJ) will exit its negative interest rate policy. In addition, the market’s latest optimism that further stimulus measures from China could boost global economic growth also prevented traders from making bullish bets on the yen and helped limit the downside for the USD/JPY exchange rate. In addition, before the minutes of the Federal Reserve meeting will be released at the end of the U.S. session, investors chose to wait and see for clues about the path of the Federal Reserve to cut interest rates. This will therefore impact the US dollar, providing fresh impetus to USD/JPY.
