Masato Kanda, Japan's currency diplomat, has issued a warning about the recent yen depreciation and stated that Japan will not propose any new policies as long as there are still profits in the currency market. However, there is a need for cautious monitoring of the market conditions.

Hajime Takata, the policy setter at the Bank of Japan (BoJ), mentioned that the BoJ will have to endure and maintain its easing policy due to the high level of uncertainty stemming from the current global economy. The U.S. Federal Reserve (FED) is expected to keep interest rates high for a while, and the market also anticipates another 25 bps rate hike by the end of the year.

In Japan's trade partner, business activity in China's service sector has expanded at the slowest rate in eight months, raising concerns in the global economy. Additionally, higher yields on U.S. government bonds, driven by a stronger U.S. dollar, exert continuous pressure on the yen.

The pressure on the USD/JPY pair necessitates traders to consider broader risks to seize short-term opportunities. Nonetheless, the fundamentals of the yen suggest further weakening if Japan continues with its unconventional monetary easing policy.