Ella 
The yen continued to gain ground on Monday as traders remained cautious ahead of a Bank of Japan (BoJ) policy meeting on Wednesday that could raise interest rates. Markets are betting that the Bank of Japan may raise interest rates by 10 basis points to 0.1% and are widely expected to announce a tapering of bond purchases.
The yen may also find support as traders may unwind carry trades ahead of the Bank of Japan’s policy decision. Japan’s top official in charge of foreign exchange affairs, Makoto Kanda, said at the Group of 20 (G20) meeting last Friday that foreign exchange fluctuations have had a negative impact on the Japanese economy. According to Reuters, Kanda pointed to the increasing possibility of a soft landing for the economy and stressed the need to pay close attention to the economy and take necessary measures.
The dollar faces challenges as cooling U.S. inflation and slowing labor market conditions fuel expectations that the Federal Reserve will cut interest rates three times this year starting in September.
