• The Japanese Yen remains depressed near a multi-decade low amid the BoJ’s dovish outlook.
• The divergent Fed-BoJ expectations support prospects for a further JPY depreciation move.
• Intervention fears hold back the JPY bears from placing fresh bets and cap the USD/JPY pair.

The Japanese Yen (JPY) oscillates in a narrow trading band near a multi-decade low during the Asian session on Tuesday and for now, seems to have stalled a two-day-old weakening trend against its American counterpart. Investors remain on alert in the wake of the possibility of an intervention by Japanese authorities to support the domestic currency, which, in turn, holds back the JPY bears from placing fresh bets. That said, the Bank of Japan's (BoJ) dovish outlook, saying that monetary policy will remain easy for some time, along with a generally positive tone around the equity markets, continues to undermine the safe-haven JPY. 

The US Dollar (USD), on the other hand, manages to hold its neck above a nearly two-week trough touched last Thursday and continues to draw support from expectations that the Federal Reserve (Fed) may delay cutting interest rates. This suggests that the gap between US and Japanese interest rates will stay wide, which, in turn, is seen as another factor acting as a tailwind for the USD/JPY pair. The USD bulls, however, prefer to wait for more cues about the Fed's rate-cut path. Hence, the focus will remain glued to the release of the US consumer inflation figures for March and the FOMC meeting minutes on Wednesday.