The Japanese Yen inches lower as the US Dollar rebounds.
The JPY could limit its downside as traders expect further intervention by Japanese authorities.
The greenback may limit its upside due to the rising expectations of the Fed reducing rates in September.
The Japanese Yen (JPY) retraces its recent gains on Thursday. However, the JPY had strengthened against the US Dollar (USD) after suspected intervention by Japanese authorities drove the USD/JPY pair to a one-month low of 155.36. Traders remain alert to the possibility of further interventions.
Reuters cited Kyodo News, reporting that Japan's top currency diplomat Masato Kanda said on Wednesday he would have to respond if speculators cause "excessive" moves in the currency market and that there was no limit to how often authorities could intervene.
The US Dollar receives support from a slight improvement in US Treasury yields. However, the greenback may limit its upside due to the high likelihood of a rate-cut decision by the Federal Reserve (Fed) in its September policy meeting.
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