• The Japanese Yen strengthens amid intervention fears and retreating US bond yields. 
• The USD remains on the defensive below the YTD peak and also weighs on USD/JPY.
• The BoJ rate-hike uncertainty might cap the JPY gains and offer support to the pair.

The Japanese Yen (JPY) ticks higher against its American counterpart during the Asian session on Tuesday, albeit it lacked bullish conviction in the wake of the uncertainty over the timing of another interest rate hike by the Bank of Japan (BoJ). Apart from this, the risk-on mood – as depicted by a generally positive tone around the equity markets – might contribute to capping the safe-haven JPY. 

That said, geopolitical risks and softening US Treasury bond yields could prevent a significant downside for the lower-yielding JPY. Furthermore, speculations that Japanese authorities could intervene to prop up the domestic currency might hold back the JPY bears from placing aggressive bets. The focus now shifts to the consumer inflation data from Japan and the global PMI prints, due later this week.