Ella 
The Japanese yen (JPY) has steadily rebounded from the lowest levels since October 1986 hit during Monday’s Asian trading session and has rebounded about 500 points from below the psychological 160.00 mark. The sharp rebound in the yen may be attributed to some kind of intervention by the Japanese authorities to boost the yen, although no official statement has been released so far. This, combined with a slight decline in the US dollar, has led to a sharp decline in USD/JPY over the past hour or so.
However, the yen appears to be struggling to rise significantly after the Bank of Japan (BoJ) remained cautious about further tightening policy and the outlook for interest rates was unclear. In contrast, the Federal Reserve (Fed) is expected to delay cutting interest rates as the U.S. PCE price index released on Friday showed strong inflation. In turn, this suggests that the wide interest rate gap between the U.S. and Japan will persist for some time, which, along with a generally positive risk tone, should limit JPY gains.
