Ella 
JPY/USD extended losses on Tuesday. Rising geopolitical tensions in the Middle East and safe-haven capital inflows may limit the yen’s downside.
The Japanese Diet is scheduled to hold a special meeting on August 23 to discuss the Bank of Japan’s (BoJ) decision to raise interest rates last month. Reuters quoted government sources as saying that the meeting organized by the House of Commons Financial Affairs Committee is expected to invite Bank of Japan Governor Kazuo Ueda to attend.
USD/JPY found support as expectations for a 50 basis point rate cut by the Federal Reserve in September eased pressure on the dollar. The odds of a 50 basis point rate cut in September have dropped to 50% from 85% last week, according to CME’s FedWatch tool. However, rate markets still see a 100% chance of a cut of at least 25 basis points at the upcoming meeting.
