• The Japanese Yen continues with its struggle to gain any meaningful traction on Wednesday.
• Intervention fears act as a tailwind for the JPY, though the BoJ monetary policy uncertainty caps the upside.
• Traders look to the FOMC minutes for cues about the Fed’s rate-cut path and a fresh impetus.

The Japanese Yen (JPY) extends the sideways consolidative price move during the Asian session on Wednesday and remains confined in a one-week-old range against its American counterpart. The recent slump below the 150.00 psychological mark prompted some verbal intervention from the Japanese authorities, which, along with the cautious market mood, underpins the safe-haven JPY. Meanwhile, expectations that the Federal Reserve (Fed) will start cutting interest rates in the coming months keep the US Dollar (USD) bulls on the defensive near a two-week low touched on Tuesday and further contribute to capping the USD/JPY pair.

That said, a recession in Japan fuelled uncertainty about the likely timing of when the Bank of Japan (BoJ) will exit the negative interest rates policy. Apart from this, the latest optimism that additional stimulus from China could boost global growth holds back traders from placing bullish bets around the JPY and helps limit the downside for the USD/JPY pair. Moreover, investors opt to wait on the sidelines ahead of the FOMC meeting minutes, due for release later during the North American session, which will be looked for cues about the Fed's rate-cut path. This, in turn, will influence the USD and provide a fresh impetus to the currency pair