Yen declined in Asian trade on Wednesday, on track for the fourth straight loss against the dollar and hovering near week lows as investors await important US data today.

Mainline US inflation data will be released today for May, followed by the policy decisions by the Federal Reserve today.

The Bank of Japan will hold its own policy meeting tomorrow to discuss developments in the worlds third largest economy, amid many reports that the BOJ will consider reducing the pace of monthly purchases of government debt.

The Price

The USD/JPY rose 0.1% to 157.25, with a session-low at 157.03.

The yen lost 0.1% against the dollar on Tuesday, the third loss in a row, plumbing a week trough at 157.40 yen.

Crucial Day in the US

First, US May inflation data will be released, followed by the Feds policy decision.

US inflation data will have an important effect on the Feds views towards policy easing and rate cuts in the months to come.

According to the Fedwatch tool, the odds of a September 0.25% Fed rate cut stand at 52%, and the odds of such a cut in November stand at 67%.

While the Fed is expected to maintain interest rates unchanged at below 5.5%, it will issue important forecasts for interest rates and inflation this week.

The Fed is widely expected to reduce the number of expected rate cuts this year from three to two.

The BOJ

The Bank of Japan is convening this week to discuss policies, expected to maintain rates unchanged.

Bloomberg reported last week that the BOJ will likely discuss cutting down its purchases of government bonds.

Similar insights came from a Reuters report, which indicated the BOJ is preparing to unwind its balance sheet of $5 trillion in a gradual manner.