The Japanese Yen (JPY) edged higher against its US counterpart during the Asian session on Thursday, pulling away from a weekly low hit the previous day.

Signs that underlying inflation in Japan is picking up continued to fuel expectations that the Bank of Japan (BOJ) will raise interest rates again in December. Moreover, persistent geopolitical risks, trade war fears and an overnight decline in US Treasury yields further benefitted the low-yielding JPY.

That said, Wednesday's aggressive remarks by a number of influential FOMC members, including Federal Reserve (Fed) Chairman Jerome Powell, acted as a tailwind for both the US Treasury yields and the US Dollar (USD).

This, along with the prevailing risk-on environment, might keep a lid on any meaningful appreciation for the safe-haven JPY and provide some support to the USD/JPY pair. Traders might also refrain from placing any aggressive directional bets ahead of Friday's US Nonfarm Payrolls (NFP) report.

Source: FXStreet