• The Japanese Yen attracts strong buying and snaps a seven-day losing streak to the YTD low.
• The upbeat domestic macro data and BoJ rate hike speculations provide a boost to the JPY.
• The post-FOMC USD selling bias further contributes to the intraday fall in the USD/JPY pair.

The Japanese Yen (JPY) gains strong positive traction during the Asian session on Thursday and recovers further from its lowest level since November 2023 touched the previous day. The Bank of Japan (BoJ) reportedly is weighing the next rate increase in July, though the October hike is considered as one of the most likely scenarios. This, along with the upbeat economic data from Japan, provides a goodish lift to the JPY amid speculations that Japanese authorities might intervene to stem any further weakness in the domestic currency.

The US Dollar (USD), on the other hand, adds to the overnight losses led by the Federal Reserve's (Fed) dovish hold, which, in turn, is seen as another factor exerting downward pressure on the USD/JPY pair. Meanwhile, the BoJ indicated earlier this week that financial conditions would remain accommodative and fell short of offering any guidance about future policy steps, or the pace of policy normalization. This might hold back the JPY bulls from placing aggressive bets and help limit any further losses for the currency pair.