According to Jinshi Data, institutional analysis shows that when North American traders come online, the selling of the yen against the dollar usually intensifies. As U.S. Treasuries continue to be sold off, the dollar strengthened again on Tuesday, which put new pressure on the yen.

Several Fed officials have been cautious about the rate cut cycle, which has created uncertainty about how quickly the U.S.-Japan yield gap will narrow. This has opened the door for the yen to fall further, with the 200-day moving average of USD/JPY at 151.36 currently the next target for investors.

Juntaro Morimoto, senior foreign exchange analyst at Sony Financial Group, said that if the pair rises above the 200-day moving average, there will no longer be any reason to prevent it from rising to around 155. On the other hand, if the pair fails to break through this level and falls back, it is expected to be difficult to rise further.