• The Japanese Yen attracts some haven flows, though it lacks bullish conviction.
• The BoJ rate-hike uncertainty and disappointing data cap the upside for the JPY.
• Smaller Fed rate cut bets underpin the USD and offer some support to USD/JPY.

The Japanese Yen (JPY) strengthened against its American counterpart on Tuesday and reversed a major part of the previous day's losses to the lowest level since early August. The overnight downfall in the US equity markets, along with persistent geopolitical risks, turned out to be key factors that drove flows towards the safe-haven JPY. That said, the uncertainty over the Bank of Japan's (BoJ) rate-hike plans keeps a lid on any meaningful appreciating move. 

Adding to this, the disappointing release of Japan's Core Machinery Orders for August contributes to capping the JPY during the Asian session on Wednesday. Meanwhile, the US Dollar (USD) stands firm near its highest level in more than two months amid expectations that the Federal Reserve (Fed) will proceed with modest interest rate cuts over the next year. This further assists the USD/JPY pair to hold steady around the 149.00 mark and warrants caution for the JPY bulls.