Chart - Courtesy Trading View
USD/JPY was trading 0.42% lower on the day at 130.80 at around 10:50 GMT. The pair is hovering around 21-EMA support, break below will see more weakness.
Uncertainty over the Fed's rate-hike path is likely exerting some downward pressure on the USD/JPY pair.
Fed Chair Jerome Powell on Tuesday struck a balanced tone on inflation and reiterated that the process of disinflation was underway.
That said, a generally positive tone undermines the safe-haven JPY and is seen limiting downside in the pair.
Technical bias for the pair is bearish. Traders lok forward to the US Weekly Initial Jobless Claims data later during the early North American session for impetus.
Broader risk sentiment will also be watched ahead of Producer Price Index (PPI) data from Japan on Friday for direction.
