Japanese yen is weakened by the Bank of Japan’s cautious stance and positive risk tone.

The Japanese yen (JPY) continues to struggle to attract buyers. Remaining well within striking distance of a multi decade low against the US dollar reached last week. The Bank of Japan’s (BoJ) dovish tone at the close of the March meeting, signaling. That the next rate hike will be some time away, along with a positive risk tone. Continues to undercut the safe-haven JPY. Bearish traders, on the other hand. Avoid putting aggressive wagers since Japanese authorities may intervene to prevent a disruptive decline in the native currency.

Fears of intervention may restrict JPY losses and prevent USDJPY gains from continuing.

Apart from that, this week’s steep US Dollar (USD) corrective slide from its highest level since February 14 appears. To be another factor keeping the USDJPY pair contained near the 152.00 round-figure mark. Meanwhile, any major corrective decline for the currency pair remains elusive. With expectations that the difference between US and Japanese rates will widen. This, in turn, implies that the past of least resistance for spot prices is to the upside. As traders now look forward to the release of the US Nonfarm Payrolls (NFP) report on Friday for a further impetus.

Daily Market Movers: Despite intervention warnings, the Japanese yen continues to fall.

Japanese government officials maintained their jawboning to preserve the home currency. Which is seen as offering some support to the Japanese yen, albeit the upside potential appears limited.
Japan’s former Vice Finance Minister for International Affairs. Tatsuo Yamasaki, stated earlier this week that the country is prepared to intervene in the currency market if the JPY falls below its present level.
Automatic Data Processing announced on Wednesday. That US private sector employment increased by 184K in March, compared to the 148 predicted and the prior month’s upwardly revised number of 155K.

Traders also prefer to wait for a break in a short-term range before the US NFP report on Friday.

Separately, data issued by the Institute for Supply Management indicated that the US Services PMI decreased. to 51.4 in March, down from 52.6 the previous month, while the Prices Paid Index fell to 53.4 from 58.6.
Federal Reserve Chairman Jerome Powell did not define the date or scale of the prospective cuts, but did say on Wednesday that it will need some time to assess the current status of inflation before lowering interest rates.
This comes as many Fed officials warned this week that the central bank was in no hurry to start cutting interest rates, while markets are still pricing in a higher possibility of a move at the June policy meeting.
The yield on the benchmark 10-year US government bond receded after hitting a four-month high on Wednesday, causing aggressive US Dollar selling, limiting the USDJPY pair ahead of 152.00 mark.
This increased investors’ desire for riskier assets, which, combined with the Bank of Japan’s (BoJ) dovish tone indicating that the next rate hike will be some time away, could sustain pressure on the safe-haven JPY.