Ella 
The yen continued to struggle to post any meaningful rebound against the dollar in Asia on Tuesday and stayed close to multi-decade lows. The Bank of Japan’s (BoJ) caution about further tightening policy suggests the gap between U.S. and Japanese interest rates will continue to widen. This, coupled with a generally bullish outlook for equity markets, continues to undermine the yen’s safe-haven value.
In addition to this, the USD/JPY pair was also supported by some dollar buying, supported by expectations that the Federal Reserve may delay interest rate cuts. Still, the growing threat of intervention by Japanese authorities to protect the currency limited the yen’s losses and capped the pair’s gains. Traders appeared to be leaning on the sidelines ahead of Wednesday’s release of U.S. consumer inflation data and FOMC minutes.
