Japanese Yen edges up from lows amid hawkish comments from BoJ’s Sato

The Japanese Yen experienced marginal gains against the US Dollar on Wednesday, with the USD/JPY pair sliding back to around 158.00 from two-week highs of 158.51. This rise was attributed to hawkish remarks made by Bank of Japan board member Ayano Sato, who expressed support for gradual adjustments to monetary policy and suggested that higher rates could lead to sustainable economic growth.

Despite overall US Dollar strength and higher oil prices, the Yen rally has been limited so far due to investor caution ahead of the Federal Reserve's monetary policy meeting and rising oil prices affecting oil-importing countries like Japan. The pair currently stands at 158.08, slightly above the 200-day simple moving average but below the previous two-month high of 160.39.

On the downside, the key support levels are at the September 20 and 30 lows (156.40-156.60) and the September 17 low (155.35).