Ella 
The Japanese yen (JPY) fell against the U.S. dollar (USD) for the third consecutive day on Monday and weakened further on weak March Purchasing Managers’ Index (PMI). Apart from this, the generally positive sentiment in the stock market was seen as another factor weakening the safe-haven yen. However, strong wage growth could feed into broader inflation trends, bolstering the case for further rate hikes, which could deter yen bears from making aggressive bets.
In addition, a narrowing gap in interest rates between Japan and other countries should help limit further declines in the yen. Meanwhile, the prospect of further policy easing by the Federal Reserve has failed to help the dollar capitalize on a rebound from multi-month lows hit last week and is likely to limit gains in the USD/JPY pair. Traders are now looking to the release of US PMIs for some momentum, although the fundamental backdrop appears to favor yen bulls.
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