The U.S. dollar has fallen to its lowest level in over a year against the Japanese yen, briefly hitting the 139 yen mark due to growing expectations for a potential 50-basis-point interest rate cut by the Federal Reserve. Analysts have noted that recent media reports and comments from a former Fed official have shifted market expectations, leading to a higher likelihood of a more aggressive rate cut. The dollar's decline comes as the futures market reflects a 51% probability of a significant rate easing at the Fed's upcoming meeting, compared to just 15% earlier. Technical analysis indicates a bearish trend for USDJPY, with potential further declines towards the July 2023 low of 137.25. In contrast, indications from Japanese policymakers for potential interest rate hikes have bolstered the yen, widening the monetary policy gap between the two central banks. As traders await the Fed's decision, the dollar remains under pressure amidst these developments.