During the Asian session today, the Japanese yen strengthened against the weakening U.S. dollar.

However, the yen's upward potential is likely to remain limited, as traders may hold off on active trading ahead of key central bank events. Later today, during the North American session, the Federal Reserve will announce its interest rate decision following its two-day meeting. On Thursday, the Bank of Japan is scheduled to release its monetary policy statement. Both central banks are expected to keep interest rates unchanged.

At the same time, there is a high likelihood that the Bank of Japan will refrain from raising rates in the near term due to signs of slowing inflation and domestic political uncertainty. Furthermore, recent trade agreements between the U.S., Japan, and the European Union have improved overall sentiment, which limits the yen's appeal as a safe-haven currency. Meanwhile, investors believe the Federal Reserve will maintain higher interest rates for longer, supported by a resilient U.S. labor market and expectations that new tariffs could reignite inflationary pressures in the second half of the year. This favors the U.S. dollar and increases the potential for yen depreciation.

From a technical perspective, further declines in the pair should find solid support in the 147.60–147.70 level. Before potentially moving down toward the 100-day EMA at 146.77, USD/JPY may test the round level of 147.00. This would be followed by last week's low. A break below that level would shift the short-term bias in favor of the bears, exposing the pair to a retest of levels below the key 146.00 level.

On the other hand, resistance is seen at 148.50 and then at yesterday's high near 148.80. Beyond that, the round 149.00 level comes into focus, followed by the monthly high and the important 200-day Simple Moving Average (SMA) around 149.57. A sustained move above this level would provide fresh bullish momentum for USD/JPY, opening the way toward the psychological 150.00 level—especially as daily chart oscillators remain in positive territory.