The Japanese yen recovers to a two-week high against the dollar as markets pare U.S. interest rate rise pricing slightly and traders remain sensitive to the prospect of currency interventions by Japanese authorities. Federal Reserve Chair Kevin Warsh said on Wednesday that inflation risks have eased. "The proximity of the U.S. holiday tomorrow is also making market participants nervous over the risk of Japan intervening in the FX market to support that yen," MUFG Bank's Lee Hardman says in a note. Intervention bets are fuelled further by Reuters reporting that Japan could shift to surprise yen intervention tactics. The dollar falls to a two-week low of 160.96 yen, having risen to a 40-year high of 162.83 Wednesday, according to LSEG. (renae.dyer@wsj.com)