The Japanese yen faced downward pressure as traders reacted to new economic data. Economic indicators revealed a decline in factory activity and a contraction in the services sector. Japan's manufacturing PMI fell to 48.3 in March, marking the lowest level in a year, while the composite PMI dropped to 48.5, showing contraction across both manufacturing and services. The data could dampen investor sentiment toward the yen, as weaker domestic activity could reduce the currency’s attractiveness.

Japanese yields rebounded to a certain extent as markets reacted to the BoJ’s comments. The central bank could continue to raise interest rates if economic and inflation targets are achieved. However, yields remained within a range overall for several days as economic uncertainty continued.

Looking ahead, the outlook for both the yen and bond yields remains tied to the BoJ’s policy decisions and the broader economic environment. While bond yields may see some upward movement if the BoJ adjusts its stance on inflation, the yen is likely to remain under pressure in the near term due to weak economic data and persistent inflation.