• The Japanese Yen attracts fresh buyers following the overnight fall to the weekly low.
• Reports that the BoJ is considering a March rate hike provide a modest boost to the JPY.
• The USD fades the warmer US CPI-led spike and does little to lend support to USD/JPY.

The Japanese Yen (JPY) edges higher against its American counterpart during the Asian session on Wednesday and moves away from the weekly low touched the previous day. A Bloomberg report, citing people familiar with the matter, indicates that the Bank of Japan (BoJ) is considering a March hike, though the outcome is too close to call and the final decision will be made after officials see the initial tally from spring wage talks. This, in turn, is seen as a key factor underpinning the JPY and exerting some downward pressure on the USD/JPY pair amid a modest US Dollar (USD) downtick.

That said, the overnight dovish remarks by BoJ Governor Kazuo Ueda might have cooled bets for an immediate rate hike. Apart from this, a generally positive risk tone might hold back traders from placing aggressive bullish bets around the safe-haven JPY. Furthermore, stronger-than-expected US consumer inflation data released on Tuesday suggested that the Federal Reserve (Fed) could potentially delay any monetary easing. This led to the overnight goodish rebound in the US Treasury bond yields, which should act as a tailwind for the Greenback and limit losses for the USD/JPY pair.