Ella 
The yen attracted fresh buying during the Asian session on Thursday, with the yen back near the upper edge of its weekly range against the dollar, but further gains seemed elusive. Remaining market jitters ahead of key U.S. inflation data dampened investor appetite for riskier assets, reflecting a generally weaker tone in equity markets and benefiting the yen’s relative safe-haven status. This, coupled with speculation that Japanese authorities may intervene in the market to prevent further weakness in the yen, provided further support to the yen.
Still, uncertainty over the Bank of Japan’s (BoJ) plans to exit ultra-easy monetary policy could hinder bulls from betting on the yen. Meanwhile, the U.S. dollar (USD) remains supported by bets that the Federal Reserve (FED) will keep interest rates higher for longer, bolstered by speeches from several Fed officials. This could help limit the downside for the USD/JPY pair. Investors are now looking to the US Personal Consumption Expenditures (PCE) price index to provide clues on the path of the Fed’s interest rate cuts, which will provide fresh momentum for USD/JPY.
