USD/JPY edges lower to 156.80 as BoJ officials maintain hawkish stance

USD/JPY has slipped 0.1% to 156.80 following comments from Bank of Japan officials Kato and Governor Ueda, though the impact remains limited as markets digest mixed signals. The pair's modest decline reflects ongoing uncertainty about the BoJ's policy normalization timeline, with officials maintaining their data-dependent approach while acknowledging improving economic conditions. Recent yen weakness has kept intervention risks elevated, with the 157.00 level acting as a key psychological barrier. Technical analysis shows immediate support at 156.50, coinciding with the 21-day moving average, while resistance remains firm at 157.20. The muted reaction suggests traders are awaiting more concrete policy signals from the BoJ, particularly regarding the timing of further rate adjustments. With US yields remaining elevated, the interest rate differential continues to favor USD/JPY upside, though intervention concerns cap aggressive bullish positioning.