The USD/JPY pair is trading near 154.10 in the early Asian session on Tuesday. The US Dollar has rebounded slightly to 105.10 after hitting three-week lows, supporting the pair’s recovery. Federal Reserve Bank of Minneapolis President Neel Kashkari is scheduled to speak later today.
Expectations of a rate cut by the US Federal Reserve have been fueled by weak US Nonfarm Payrolls and Services PMI data last week. However, Fed officials have differing views on inflation and interest rates. Richmond Fed President Thomas Barkin mentioned on Monday that he has not seen evidence of inflation meeting targets yet.
The risk-on sentiment in the market is putting pressure on safe-haven currencies like the Japanese Yen. Japanese authorities may intervene to address excessive market volatility. The recent weak US jobs report has also influenced market dynamics. Investors will closely monitor statements from Fed officials this week for further guidance on monetary policy.