Ella 
The Japanese yen strengthened slightly against the US dollar during the Asian session on Tuesday, reversing some of the losses from the previous day to yearly lows earlier this month. Japan’s consumer inflation rate fell slightly less than expected in January, fueling speculation about a near-term policy shift by the Bank of Japan (BoJ). That, along with a generally weaker tone in equities, was a key factor in giving the safe-haven yen a modest boost amid concerns that Japanese authorities would intervene in markets to support the currency.
On the other hand, the US dollar (USD) continues to struggle to attract meaningful buying and is still hovering near the multi-week lows hit last Thursday. This further added to USD/JPY’s gains, although the USD/JPY decline lacked follow-on momentum amid growing belief that the Federal Reserve (FED) will keep interest rates higher for longer. Traders may also be inclined to wait for key U.S. macro data to be released this week, including the personal consumption expenditures (PCE) price index on Thursday, before establishing new directional bets.
