• USD/JPY retreats from over a three-week high touched on Monday amid a modest USD weakness.
• A generally positive risk tone could undermine the safe-haven JPY and lend support to the major.
• The divergent Fed-BoJ policy outlook also warrants caution before placing aggressive bearish bets.

The USD/JPY pair comes under some selling pressure on Tuesday and erodes a part of the previous day's strong gains to the 133.85 region, or its highest level since mid-March. Spot prices drop to a fresh daily low, around the 133.00 round-figure mark during the early part of the European session and for now, seem to have snapped a three-day winning streak.

The US Dollar (USD) meets with some supply and stalls a four-day-old recovery trend from over a two-month low touched last week, which, in turn, is seen dragging the USD/JPY pair lower. The USD downtick, however, seems limited amid speculations that the Federal Reserve (Fed) may continue raising interest rates. In fact, the current market pricing indicates a greater chance of a 25 bps lift-off at the next FOMC monetary policy meeting in May and the bets were lifted by the mostly upbeat US employment details (NFP) released on Friday.