Ella 
In Asia on Tuesday, the yen fluctuated within a narrow range near multi-decade lows and now appears to have interrupted its two-day weakening trend against the US dollar. Investors were wary of possible intervention by Japanese authorities to support the currency, which in turn prevented yen bears from launching new bets. In other words, the Bank of Japan (BoJ) stated that monetary policy will remain loose for some time and the dovish outlook, as well as the stock market maintaining a generally positive tone, continued to weaken the risk aversion sentiment in the Japanese yen.
On the other hand, the U.S. dollar (USD) barely stabilized above the nearly two-week low hit last Thursday and continued to draw support from expectations that the Federal Reserve (Fed) may delay a rate cut. This suggests that the gap between U.S. and Japanese interest rates will continue to widen, which is therefore seen as another boost for USD/JPY. However, dollar bulls tend to wait for more clues on the path of the Fed’s interest rate cuts. Therefore, market focus will remain on U.S. consumer inflation data for March and the Federal Reserve meeting minutes due on Wednesday.
