The Japanese yen slipped against its major counterparts in the Asian session on Thursday, as comments from Federal Reserve Chairman Jerome Powell helped soothe concerns over an aggressive half-point rate hike this month.

In his Congressional testimony, Powell said that it would be appropriate to raise the target range for the federal funds rate at the meeting later this month on the back of high inflation and a strong labor market.

Powell cautioned that "the near-term effects on the U.S. economy of the invasion of Ukraine, the ongoing war, the sanctions, and of events to come," remained highly uncertain.

The Fed would need to be nimble in responding to incoming data and the evolving outlook.

Asian markets are mostly higher, tracking overnight gains on Wall Street, amid indications of a gradual tightening of monetary policy due to the uncertain economic outlook.

The yen weakened to a 6-day low of 155.15 against the pound and near a 2-month low of 125.83 against the franc, down from its early highs of 154.64 and 125.40, respectively. The next possible support for the yen is seen around 157.00 against the pound and 129.00 against the franc.

The yen depreciated to a 3-day low of 115.72 against the greenback and near a 4-month low of 84.74 against the aussie, after rising to 115.44 and 84.12, respectively in early deals. Should the yen falls further, 119.00 and 86.00 may be seen as its next support levels against the greenback and the aussie, respectively.

Pulling back from its previous highs of 78.17 against the kiwi and 91.32 against the loonie, the yen dropped to near a 2-month low of 78.58 and a 1-1/2-month low of 91.79, respectively. The yen is seen finding support around 80.00 against the kiwi and 94.5 against the loonie.

In contrast, the yen held steady against the euro, after a rise to 128.21 at 9:05 pm ET. The pair had ended Wednesday's trading at 128.39.

Looking ahead, PMI reports from major European economies, Eurozone jobless rate and PPI for January are due in the European session.

U.S. weekly jobless claims for the week ended February 26, ISM non-manufacturing PMI for February and factory orders for January will be released in the New York session.

At 7.30 am ET, the European Central Bank releases the accounts of the monetary policy meeting of the governing council held on February 2 and 3.

At 10 am ET, Federal Reserve Chair Jerome Powell will testify on the semi-annual monetary policy report before the Senate Banking Committee in Washington DC.

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