Ella 
The Japanese yen (JPY) gained strong upward traction during the Asian session on Thursday, recovering further from its lowest levels since November 2023 hit the previous day. The Bank of Japan (BoJ) is reportedly weighing its next interest rate hike in July, although an October hike is considered one of the most likely scenarios. This, coupled with upbeat Japanese economic data, has provided the yen with a nice boost amid speculation that Japanese authorities may intervene to stop the currency from weakening further.
On the other hand, the US dollar (USD) exacerbated overnight losses amid a dovish stance from the Federal Reserve, another factor adding downward pressure on USD/JPY. Meanwhile, the Bank of Japan said earlier this week that financial conditions would remain accommodative but did not provide any guidance on future policy measures or the pace of policy normalization. This could dampen aggressive bets by yen bulls and help limit further losses for the pair.
