Anna 
As the European session unfolds on Thursday, the Japanese Yen (JPY) relinquishes a significant portion of its earlier gains, remaining in proximity to its year-to-date low against the US Dollar (USD). The Bank of Japan’s (BoJ) recent affirmation of accommodative financial conditions, coupled with the prevailing risk-on sentiment, drives renewed selling pressure on the safe-haven JPY.
In contrast, the USD hovers near a one-week low following the Federal Reserve’s (Fed) projection of three interest rate cuts by year-end. Despite this dovish stance, a minor uptick in US Treasury bond yields provides some bolstering for the USD, aiding the USD/JPY pair to rebound approximately 70-75 pips from its daily nadir, hovering around the 150.25 mark.
Notably, concerns arise regarding potential intervention by Japanese authorities to counteract further depreciation of the JPY, which may restrain traders from executing aggressive directional trades and cap the upside potential for the currency pair.
