The Japanese yen continues to be under pressure as investors worry about the Bank of Japan's (BoJ) tightening monetary policy. Japan's economy contracted sharply in the first quarter of the year, directly impacting investor expectations.

Fed policymakers are expected to maintain interest rates at the May policy meeting, as the U.S. Consumer Price Index (CPI) data did not decline as anticipated, necessitating the continuation of the current interest rate.

Additionally, the slowdown in labor demand and the drop in inflation in April have increased expectations that the Fed will begin its first rate cut at the September meeting.