USD/JPY faces pressure as BoJ's Masu signals cautious rate approach

USD/JPY remains under modest selling pressure near 161.20 following dovish comments from Bank of Japan board member Masu, who emphasized that underlying inflation remains below the 2% target. The official stated the BoJ cannot rush into raising interest rates and must move cautiously while monitoring various economic indicators. Masu specifically highlighted concerns about ongoing trade negotiations between Japan and the US, noting automobiles as Japan's export mainstay. The cautious stance suggests the BoJ will maintain its ultra-loose monetary policy for longer than some market participants anticipated. Technical indicators show USD/JPY consolidating below the 161.50 resistance level, with immediate support at 160.80. The pair's direction will likely depend on upcoming US economic data and any shifts in BoJ rhetoric, with traders closely watching for signs of policy divergence between the Federal Reserve and Bank of Japan.