• The Japanese Yen gains strong positive traction amid a softer risk tone and intervention fears.
• The BoJ policy uncertainty could cap further gains and help limit losses for the USD/JPY pair.
• Traders might also prefer to wait for the US PCE Price Index release before placing directional bets.

The Japanese Yen (JPY) catches fresh bids during the Asian session on Thursday and rallies back closer to the top end of the weekly range against its American counterpart, though any further appreciating move still seems elusive. The nervousness ahead of the crucial US inflation data tempers investors' appetite for riskier assets, which is evident from a generally weaker tone around the equity markets and benefits the JPY's relative safe-haven status. This, along with speculations that Japanese authorities might intervene in the market to stem any further JPY weakness, offers additional support.

That said, the uncertainty over the Bank of Japan's (BoJ) plans to exit its ultra-easy monetary policy might hold back bulls from placing aggressive bets around the JPY. Meanwhile, the US Dollar (USD) remains supported by bets that the Federal Reserve (Fed) will keep rates higher for longer, bolstered by comments from several FOMC officials. This might contribute to limiting the downside for the USD/JPY pair. Investors now look to the US Personal Consumption Expenditures (PCE) Price Index for cues about the Fed's rate-cut path, which should provide a fresh impetus to the currency pair.