• The Japanese Yen attracts some buyers following the release of consumer inflation figures from Japan.
• The USD hangs near a multi-week low amid sliding US bond yields and also exerts pressure on USD/JPY.
• The downside seems limited ahead of this week’s key US macro releases, including the PCE Price Index.

The Japanese Yen (JPY) strengthens a bit against its American counterpart during the Asian session on Tuesday and reverses a part of the previous day's losses back closer to the YTD low touched earlier this month. Consumer inflation in Japan fell slightly less than expected in January and fuelled speculations about a near-term pivot by the Bank of Japan (BoJ). This, along with a generally softer tone around the equity markets, turn out to be key factors providing a modest lift to the safe-haven JPY amid fears that Japanese authorities will intervene in the market to prop up the domestic currency.

The US Dollar (USD), on the other hand, continues with its struggle to attract any meaningful buying and remains well within the striking distance of a multi-week low touched last Thursday. This further contributes to the offered tone surrounding the USD/JPY pair, though the downtick lacks follow-through amid growing acceptance that the Federal Reserve (Fed) will keep interest rates higher for longer. Traders might also prefer to wait for this week's key US macro releases, including the Personal Consumption Expenditures (PCE) Price Index on Thursday, before placing fresh directional bets