The rebound comes as investors remain cautious ahead of the Federal Reserve (Fed) policy decision expected later in the day. Several major banks believe the central bank will emphasize a wait-and-see approach, even as markets continue to price in two rate cuts later this year. Since the last Fed meeting, US macroeconomic data have broadly supported the view that the central bank can afford to remain patient. On the Japanese side, the Japanese Yen (JPY) continues to draw structural support from the evolving monetary policy outlook. This backdrop helps limit Japanese Yen losses, despite persistent concerns over Japan’s fiscal position and political uncertainty ahead of the snap election scheduled for February 8.