Risk aversion in the currency markets faded on Wednesday, as safe haven currencies such as Swiss franc and Japanese yen fell against the dollar and the euro, after a strong run up.

USD/JPY hit a day high of 84.26 during early European trade, before consolidating at 84.07, up 0.60 percent. EUR/JPY gained 0.81 percent to hit 121.96.

USD/CHF rebounded from a one-month low to hit a day high of 0.8992, before settling at 0.8984, gaining 0.16 percent. EUR/CHF rose 0.30 percent to hit 1.3025.

“The improvement in risk sentiment had stalled in early April, setting the stage for at least a modest reversal,” said a note from RBC Capital Markets.

Earlier on Wednesday, the greenback hit a near a session low of 83.44 yen, after Japan raised the severity level at its crippled nuclear power plant. The pair is likely to find support at day’s low of 83.44 and resistance at 85.54, a seven-month high hit on last Thursday.

Traders said that yen has been pressurized by short-covering and profit booking. The yen rebounded sharply against the dollar and euro on Monday, after another major earthquake hit the northeast of Japan, the third in just a month.

The Japanese cabinet office on Wednesday said that the economy has shown some weakness after a devastating earthquake hit the country on March 11.

Analysts’ said that global interest rate outlook to put pressure on yen, as the Bank of Japan (BoJ) is likely to maintain loose monetary policy to help the economy recover from the earthquakes. The BoJ kept rates unchanged at 0.1 percent during its meeting last week.

Switzerland’s Federal Statistical Office on Wednesday said the producer price index (PPI), a measure of change in prices of domestically produced goods and services, rose 0.4 percent in March year-on-year in line with the market expectations.

Analysts said that the investors trimmed franc positions to book profits following its strong rise in the recent sessions. Some analysts expect any rise in risk aversion to buoy Swissie, while others expressed concern about the franc's current high valuation hampering exporters.

Traders await US retail sales and crude oil inventories data later on Wednesday, while Federal Reserve will publish its Beige Book.