Anna 
The Japanese yen’s USD/JPY pair, which reflects the currency’s strength inversely, rose by 0.1% on Tuesday, trading comfortably above 156 yen.
Earlier in May, the pair had recovered a significant portion of its losses incurred when the government intervened in currency markets on two separate occasions. Despite traders identifying 160 yen as the new threshold for potential government intervention, the rapid appreciation of USD/JPY, despite intervention warnings, has raised concerns that the government may act sooner than expected.
In other economic news, Japanese producer price index data for April indicated that factory inflation remained largely subdued. This suggests there is little inflationary pressure on the Bank of Japan to tighten its policy stance.
The evolving situation with the yen and USD/JPY underscores ongoing market dynamics and policy considerations in Japan, with investors closely monitoring currency movements and economic indicators for potential impacts on monetary policy and broader economic conditions.
