• The Japanese Yen continues losing ground amid the divergent BoJ-Fed policy expectations.
• The recent intervention warnings by Japanese authorities do little to provide any respite.
• Traders now look to the US Q1 GDP report for some impetus ahead of the BoJ on Friday.

The Japanese Yen (JPY) extends its weakening trend further below the 155.00 psychological mark and drops to the lowest level since June 1990 against its American counterpart during the Asian session on Thursday. The wide interest-rate differential between Japan and the United States (US) is seen as a key factor that continues to undermine the JPY. The move, however, fuels the risk of a potential intervention by Japanese authorities, which, in turn, might hold back the JPY bears from placing fresh bets. Traders might also prefer to move to the sidelines ahead of the crucial Bank of Japan (BoJ) monetary policy decision on Friday.

The Japanese central bank is widely expected to leave policy settings, and bond purchase amounts unchanged after raising interest rates in March for the first time since 2007. In contrast, investors seem convinced that the Federal Reserve (Fed) may delay cutting interest rates in the wake of still sticky inflation, which remains supportive of elevated US Treasury bond yields and acts as a tailwind for the US Dollar (USD). This, in turn, suggests that the path of least resistance for the USD/JPY pair remains to the upside.