Anna 
The Japanese Yen (JPY) faced selling pressure on Friday, sliding to a new multi-decade low against its American counterpart as the European session approached. The Bank of Japan (BoJ) adopted a dovish tone at the conclusion of its March meeting, refraining from providing guidance on future policy steps. In contrast, the Federal Reserve (Fed) is expected to postpone interest rate cuts due to persistent inflation, widening the interest rate differential between the US and Japan. This, coupled with stable equity markets, continues to weigh on the safe-haven appeal of the JPY.
Furthermore, the release of hotter-than-expected US consumer inflation data prompted investors to revise their expectations regarding the timing of the first Fed rate cut, pushing it from June to September. The hawkish outlook has supported elevated US Treasury bond yields and propelled the US Dollar (USD) to its highest level since November. Consequently, the USD/JPY pair receives additional support.
However, speculation persists that Japanese authorities may intervene in the markets to prevent further weakness in the JPY. As a result, traders exercise caution before positioning for any additional near-term appreciation in the USD/JPY pair.
