The Japanese Yen (JPY) struggles to register any meaningful recovery against its American counterpart and hangs near its lowest level since early August through the Asian session on Monday. Japanese Prime Minister Shigeru Ishiba's remarks earlier this month, saying that the economy was not ready for further interest rate hikes, raised doubt about the Bank of Japan's (BoJ) rate hike plans. This, along with a generally positive tone around the equity markets, continues to undermine demand for the safe-haven JPY.

The US Dollar (USD), on the other hand, remains firm near a two-month high amid growing acceptance of a less aggressive policy easing by the Federal Reserve (Fed) and turns out to be another factor acting as a tailwind for the USD/JPY pair. The Fed, however, is still expected to lower borrowing costs by 25 basis points in November. In contrast, the BoJ is more likely to stick to its rate-hiking cycle. This might cap the upside for the currency pair amid relatively thin trading volumes on the back of a partial holiday in the US.

Source: FXStreet