Mumbai, Aug. 26 -- The Japanese yen strengthened to around 159 per dollar on Wednesday, snapping a two-day decline as falling oil prices eased near-term inflation concerns and renewed Middle East diplomatic efforts reduced pressure on energy markets. The yen also drew support from a softer dollar ahead of key US inflation data and a speech by Federal Reserve Chair Kevin Warsh later this week. Markets remain caught between expectations for Federal Reserve rate cuts and speculation of further Bank of Japan tightening, with Japan's July Corporate Services Price Index due later today potentially offering fresh clues on the BOJ's policy outlook. Attention is now focused on whether the dollar-yen pair can sustain levels above 159 or move toward...