Japanese Yen Strengthens as US Dollar Retreats Ahead of FOMC Minutes

The Japanese Yen has strengthened against the US Dollar as traders position ahead of the Federal Reserve's FOMC meeting minutes, scheduled for Wednesday.

The USD/JPY pair fell to the mid-151 range due to a modest shift in risk sentiment and growing expectations that the Fed may signal a slower pace of rate cuts in the coming months.

This is largely attributed to profit-taking and cautious positioning before the FOMC minutes, which are expected to offer further clarity on the central bank's policy trajectory.

The Bank of Japan has maintained its ultra-loose monetary policy, but market participants are increasingly pricing in a potential policy shift next year, with BOJ officials hinting at a possible exit from negative interest rates.