The Japanese Yen (JPY) fluctuated in a range during the Asian session on Thursday and consolidated its recent decline against its American rival, hitting its lowest level since mid-August hit the previous day. Data published earlier on Thursday showed that the Producer Price Index (PPI) in Japan remained unchanged in September and rose more than anticipated on an annualized basis during the reported month. This, coupled with the risk of further escalation of tensions in the Middle East, provided some support to the JPY as a safe-haven.

Meanwhile, the US Dollar (USD) entered a bullish consolidation phase near eight-week highs as traders stayed away ahead of the release of US consumer inflation figures due later on Thursday. This contributed to capping the upside for the USD/JPY pair. However, uncertainty over the Bank of Japan's (BOJ) plans for additional interest rate hikes might keep a lid on the JPY. Further, bets for a regular 25 basis points (bps) interest rate cut by the Federal Reserve (Fed) should act as a tailwind for the greenback and the pair.

Source : FXstreet