Expectations that President Donald Trump's policies might increase inflationary pressures and limit the Federal Reserve's scope for easing interest rates have led to higher U.S. government bond yields, directly impacting the yen.

Investors are also awaiting the Bank of Japan's decision and remain concerned about potential intervention by the central bank if the yen weakens too much.

However, Japan's current political climate has raised questions about the Bank of Japan's decision to raise interest rates again. Additionally, the relatively slow increase in inflation remains a key factor preventing the Bank of Japan from raising rates in its latest meeting.

Source: Fxstreet