On Friday, the yen managed to strengthen against the US dollar and is preparing to show weekly growth amid the possible intervention of the Bank of Japan in the currency market.
During the Asian session, the yen reached 152.75 per dollar but failed to hold this level and dropped to the 153 mark.
At the time of writing, the USD/JPY is trading at 153.10, down 0.35% over the past 24 hours.
The Bank of Japan allocated 9.16 trillion yen to support the national currency this week, making traders extremely cautious about its future actions.
The interventions by Tokyo took place on Monday and late Wednesday night as the market experienced a lack of liquidity, according to Reuters.
"The Ministry of Finance probably wants to prevent the markets from making a one-way bet on the yen, creating a downtrend and causing it to weaken sharply," said Vasu Menon, Managing Director of Investment Strategy at OCBC.
EUR/JPY and GBP/JPY fell 0.21% and 0.17% to 164.45 and 192.26, respectively, while AUD/JPY and NZD/JPY lost 0.17% and 0.20% to 100.73 and 91.44, respectively.
Meanwhile, the US dollar weakened against its global counterparts as market attention shifted to the prospect of interest rate cuts from the Federal Reserve (Fed).
At its latest two-day meeting, the Fed left interest rates unchanged but signaled a possible cut this year despite steady inflation.
Jerome Powell said after the meeting that the Fed's next decision is likely to be a rate cut rather than a rate hike.
The EUR/USD and GBP/USD were up 0.03% and 0.10%, respectively, at 1.0727 and 1.2544.
At the same time, AUD/USD and NZD/USD jumped 0.15% and 0.16% to 0.6573 and 0.5964, respectively, as the Reserve Bank of Australia took a hawkish stance after the latest inflation figures came in above forecasts.
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