Ella 
The Japanese yen (JPY) is under selling pressure again on the first day of the new week, falling to fresh multi-decade lows during the Asian session. The Bank of Japan (BoJ) has given few clues on when it will raise interest rates further. By contrast, the Federal Reserve (Fed) is currently expected to begin its rate-cutting cycle in September with inflation remaining subdued. This in turn suggests that the wide disparity between U.S. and Japanese interest rates will persist for some time, which in turn continues to undermine the safe-haven value of the yen.
Meanwhile, recent warnings from Japanese authorities that they will intervene in markets to support the currency, coupled with further escalations in the Middle East conflict, have given the safe-haven yen little respite. On the other hand, the U.S. dollar (USD) held steady near its highest levels since early November amid expectations that the Federal Reserve may delay interest rate cuts. The hawkish outlook has kept U.S. Treasury yields higher, which benefits USD bulls and suggests the path of least resistance for USD/JPY to the upside.
