• USD/JPY continues to draw some support from the divergent Fed-BoJ policy stance. 
• Fears that authorities will intervene to support the JPY cap the upside for the major.
• Traders also seem reluctant ahead of the crucial US PCE Price Index data on Friday.

The USD/JPY pair oscillates in a narrow trading range during the Asian session on Wednesday and is currently placed, around the 159.70-159.75 region, or just below a nearly two-month peak touched earlier this week. The upside, meanwhile, remains capped amid fears that Japanese authorities or the Bank of Japan (BoJ) might intervene in the markets to prop up the domestic currency. 

In fact, Japan's Vice Finance Minister Masato Kanda reiterated that the government is prepared to take appropriate action if excessive currency fluctuations have a negative impact on the national economy. Kanda’s comments, however, had minimal impact on the Japanese Yen (JPY) in the wake of the BoJ's reluctance to provide a detailed plan for the reduction of bond purchases. This marks a big divergence in comparison to the Federal Reserve's (Fed) hawkish stance and suggests that the path of least resistance for the USD/JPY pair is to the upside.