Japanese Yen struggles to lure buyers, seems vulnerable near multi-month low

The Japanese Yen trades with a mild positive bias on Wednesday, albeit it lacks bullish conviction.

The BoJ rate-hike uncertainty, along with the upbeat market mood, caps the upside for the JPY.

Traders also seem reluctant ahead of the BoJ decision and important US macro data this week.

The Japanese Yen (JPY) edges higher against its American counterpart during the Asian session on Wednesday amid fears that authorities will intervene in the market to prop up the domestic currency. The uptick, however, lacks bullish conviction amid expectations that the loss of the parliamentary majority by Japan's ruling coalition could make it difficult for the Bank of Japan (BoJ) to tighten its monetary policy further. Furthermore, the upbeat market mood is seen as another factor that is acting as a headwind for the safe-haven JPY.

Traders also seem reluctant to place aggressive directional bets and might opt to wait on the sidelines ahead of the crucial BoJ decision on Thursday. Apart from this, investors this week will confront important US macro data – the Advance Q3 GDP print later today, the Personal Consumption Expenditure (PCE) Price Index on Thursday and the Nonfarm Payrolls (NFP) report on Friday. This will play a key role in influencing the near-term US Dollar (USD) price dynamics and provide some meaningful impetus to the USD/JPY pair.