The Japanese yen weakened against other major currencies in the Asian session on Tuesday, as traders are concerned about the Japanese government's intervention in currency markets to prop up the yen.

Meanwhile, traders remain cautious ahead of key U.S. inflation data, including producer and consumer price inflation, due later in the day that could offer more clarity on the US Fed's interest rate trajectory.

The report on U.S. producer price inflation is likely to be in focus on Tuesday along with Fed Chair Jerome Powell's remarks during a moderate discussion with De Nederlandsche Bank President Klaas Knot.

In economic news, producer prices in Japan were up 0.3 percent on month in April, the Bank of Japan said on Tuesday, accelerating from 0.2 percent in March. On a yearly basis, producer prices rose 0.9 percent - unchanged from the previous month following an upward revision from 0.8 percent. Export prices were up 0.4 percent on month and 1.3 percent on year, the bank said, while import prices fell 0.1 percent on month and 4.3 percent on year.

The safe-haven yen started falling against its major rivals form May 3rd, 2024.

In the Asian trading today, the yen fell to more than 2-week lows of 168.78 against the euro and 172.25 against the Swiss franc, from yesterday's closing quotes of 168.61 and 172.06, respectively. If the yen extends its downtrend, it is likely to find support around 172.00 against the euro and 176.00 against the franc.

Against the pound and the U.S. dollar, the yen slipped to 2-week lows of 196.50 and 156.51 from Monday's closing quotes of 196.23 and 156.24, respectively. The yen may test support near the 201.00 against the pound and 161.00 against the greenback.

Against the Australia and the New Zealand dollars, the yen dropped to more than 2-week lows of 103.33 and 94.15 from yesterday's closing quotes of 103.20 and 93.94, respectively. On the downside, 105.00 against the aussie and 95.00 against the kiwi are seen as the next support levels for the yen.

The yen edged down to 114.42 against the Canadian dollar, from yesterday's closing value of 114.31. The next possible downside target for the yen is seen around the 118.00 region.

Looking ahead, Germany's ZEW economic sentiment for May is due to be released at 5:00 am ET in the European session.

In the New York session, U.S. NFIB business optimism index for April, Canada new Motor vehicle sales and wholesale sales data for March, U.S. PPI for April and U.S. Redbook report are slated for release.

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