Ella 
The yen extended gains against the dollar on Wednesday. USD/JPY faces resistance as expectations continue to rise that the Bank of Japan (BOJ) will raise interest rates again in 2024. The Japanese Parliament 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 Bank of Japan Governor Kazuo Ueda is expected to attend the meeting.
Safe-haven flows could provide support to the yen amid rising geopolitical tensions in the Middle East. The British Broadcasting Corporation (BBC) reported on Tuesday that the United States has dispatched a missile submarine to the Middle East.
The U.S. producer price index (PPI) data released on Tuesday was lower than expected, and the dollar fell accordingly. This increases market bets that the Federal Reserve will cut interest rates. Investors are likely to watch U.S. inflation data on Wednesday, which could provide some signal on the Federal Reserve’s (FED) rate-cutting path.
