• The Japanese Yen strengthened for the second straight day against the USD on Friday.
• The risk-off mood, along with intervention fears, boosts demand for the safe-haven JPY.
• The Fed rate-cut uncertainty undermines the USD and contributes to the USD/JPY’s fall.
• Traders now look to the release of the US jobs data (NFP) for some meaningful impetus.

The Japanese Yen (JPY) moves higher against its American counterpart for the second straight day on Friday and jumps to over a two-week-high during the Asian session. Concerns that the Israel-Hamas war may spread to include Iran and spark a wider conflict in the Middle East, along with hawkish remarks from Federal Reserve (Fed) officials, temper investors' appetite for riskier assets. This led to the overnight slump in the US equity markets and drove some haven flows towards the JPY. 

Meanwhile, investors remain on high alert amid the possibility of intervention by Japanese authorities to prop up the domestic currency. Furthermore, the Bank of Japan Governor Kazuo Ueda signaled a chance of a rate hike if the JPY moves affect inflation and wages, which turns out to be another factor underpinning the JPY. The US Dollar (USD), on the other hand, struggles to capitalize on the overnight bounce from a two-week low and contributes to the offered tone surrounding the USD/JPY pair. 

It, however, remains to be seen if the JPY bulls can build on the momentum or opt to wait on the sidelines ahead of the release of the crucial US monthly employment details later during the North American session. The popularly known Nonfarm Payrolls (NFP) report will be looked upon for cues about the Fed's interest rate-cut path. This, in turn, will play a key role in influencing the near-term USD price dynamics and determining the next leg of a directional move for the USD/JPY pair