The yen gained ground in Asian trade on Tuesday on track for the first profit in four days against the dollar and moving away from recent six-week lows.

The dollar is expanding its losses in the forex market as the risk appetite rebounded after US President Donald Trumps announcement of a ceasefire between Israel and Iran.

The cautious Bank of Japans policy meeting last week also hurt the odds of normalizing the monetary policy and hiking interest rates in July, as traders now await more data from the worlds third largest economy.

The Price

The USD/JPY price fell 0.6% today to 145.29, with a session-high at 146.17.

The yen lost 0.1% on Monday against the greenback, hitting a six-week trough at 148.03 amid mounting geopolitical tensions back then.

Ceasefire

US President Donald Trump announced a ceasefire agreement between Iran and Israel, to get into effect in a few hours.

The deal, reached with Qatari help and US coordination, stipulates an Iranian ceasefire first, followed by Israel in 12 hours, then the announcement of the end of the 12-day war in 24 hours.

Trump lauded the agreement which avoided a war that wouldve destroyed the Middle East.

US Dollar

The dollar index fell 0.3% on Tuesday away from a four-week high at 99.42 against a basket of major rivals.

The dollar fell as the risk appetite improved in most global markets following the Iran-Israel ceasefire.

Later today, Fed Chair Jerome Powell is scheduled to testify ahead of the House of Parliament in Washington.

Japanese Rates

The odds of a Bank of Japan 0.25% interest rate hike in July is still below 40%.

Now investors await more inflation, unemployment, and wages data from Japan.