Ella 
The yen fell for a third straight day on Wednesday, approaching its lowest level since November 2023 hit last week. The Bank of Japan (BoJ) struck a dovish tone at the end of its March policy meeting, offering no guidance on future policy steps or the pace of policy normalization, despite raising interest rates for the first time since 2007. This again puts yen bulls on the defensive, although verbal intervention from the Japanese authorities helped prevent further losses in USD/JPY.
On the other hand, the US dollar (USD) continues to draw support from the optimistic outlook for the US economy, with markets doubting whether the Federal Reserve (Fed) will cut interest rates three times this year as expected while inflation remains subdued. This is therefore seen as another factor supporting the USD/JPY pair, supporting its prospects for further gains. However, traders may prefer to wait and see the U.S. PCE price index released on Friday to get more clues about the Fed’s policy path before making bets in a new direction.
