Yen Falls Amid Risk Appetite

The Japanese yen slipped against its major rivals in the early European session on Tuesday, as sentiment lifted up ahead of a slew of central bank meetings this week, as well as a rise in oil prices on news that Saudi Arabia was making significant supply cuts to customers.

The Fed is widely expected to hike its fed funds rate by 25 basis points, but investors will parse the policy statement for any fresh hints on the pace of further tightening.

The Bank of England and the Bank of Japan will announce their monetary policy decisions on Thursday and Friday, respectively.

U.S. Attorney General Jeff Sessions will testify in public to the Senate Intelligence Committee later today to explain his role in the Russia investigation.

Oil prices lifted up, buoyed by statement from Saudi Arabia that the nation is making real cuts, including 300,000 barrels per day to Asia for July

Quarterly survey from the Ministry of Finance and the Cabinet Office showed that Japanese large industries' business sentiment deteriorated in the second quarter.

The Business Survey Index, or BSI, fell to -2 in the second quarter from 1.3 in the previous period.

The currency has been trading in a negative territory in the Asian session.

The yen slid to 4-day lows of 114.10 against the Swiss franc and 123.75 versus the euro, off its early highs of 113.28 and 123.01, respectively. If the yen extends decline, 116.00 and 126.00 are likely seen as its next support levels against the franc and the euro, respectively.

The Japanese yen slipped to 79.56 against the kiwi, after having advanced to 78.98 at 5:00 pm ET. The yen is poised to locate support around the 81.00 region.

The yen dropped to a 4-day low of 83.24 against aussie and near a 3-week low of 83.13 against the loonie, compared to Monday's closing values of 82.91 and 82.49,respectively. The next possible support levels for the yen are seen around 86.00 against the aussie and 85.00 against the loonie.

The yen weakened to 110.27 against the greenback and 140.09 against the pound, down from yesterday's closing quotes of 109.93 and 139.18,respectively. On the downside, the yen is likely to find support around 112.00 against the greenback and 142.00 against the pound.

Looking ahead, U.S. producer prices for May are due in the New York session.

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