Anna 
For the second consecutive day on Monday, the Japanese Yen (JPY) faced selling pressure, hovering just above a multi-decade low as the European session commenced. The cautious stance adopted by the Bank of Japan (BoJ) towards further policy tightening indicates that the interest rate differential between the US and Japan will remain significant.
This, coupled with easing geopolitical tensions and an overall positive risk sentiment, pulls the safe-haven JPY away from its over two-week high against the US Dollar (USD) reached on Friday.
In contrast, the upbeat US jobs report released on Friday suggests that the Federal Reserve (Fed) may postpone interest rate cuts, thereby supporting elevated US Treasury bond yields. This scenario aids the USD in attracting buyers and acts as an additional tailwind for the USD/JPY pair. However, speculation regarding potential Japanese intervention in the markets to counteract further JPY weakness may limit gains for the currency pair, especially ahead of crucial releases from the US scheduled for this week.
