USD/JPY loses ground below 148.00 as traders digest Fed speeches

• USD/JPY softens to around 147.75 in Tuesday's early Asian session.
• Fed's Miran called for cutting the main interest rate to avert job loss. 
• Political uncertainty in Japan could undermine the Japanese Yen. 

The USD/JPY pair loses ground to near 147.75 during the early Asian session on Tuesday. The US Dollar (USD) weakens against the Japanese Yen (JPY) as investors digested comments from Federal Reserve (Fed) officials about its latest monetary policy stance. Traders await the advanced US S&P Global Manufacturing and Services Purchasing Managers Index (PMI) reports later on Tuesday. 

The US central bank delivered an expected rate cut last week but indicated no rush to lower borrowing costs quickly in the coming months. Fed Chair Jerome Powell stated during the press conference that the decision was a "risk management cut" intended to address a weakening labor market while inflation remains somewhat elevated.

On Monday, St. Louis Fed President Alberto Musalem said that he supported the rate cut at last week's Fed meeting as a precautionary move to protect the job market, but said there may be "limited room" for additional cuts given inflation above the Fed's 2% target. 

Fed Governor Stephen Miran last week voted against the quarter-percentage-point reduction in favor of a steeper 50 bps rate cut, saying that Fed interest rates are far too high and far too restrictive. Traders will take more cues from the Fed Chair Jerome Powell's speech in Rhode Island later on Tuesday.

On the other hand, political uncertainty in Japan ahead of the Liberal Democratic Party leadership election scheduled for October 4 was a factor in the Bank of Japan's (BoJ) caution over further rate hikes. This, in turn, could weigh on the JPY in the near term.