USD/JPY steady as BOJ keeps regional assessments unchanged

USD/JPY remains stable near 157.50 following the Bank of Japan's quarterly regional report maintaining economic assessments for all nine Japanese regions. The rare unchanged report describes regional economies as either 'recovering moderately' or 'picking up moderately,' signaling steady but unremarkable growth across Japan. This status quo stance from the BOJ reinforces expectations of continued ultra-loose monetary policy, maintaining the significant rate differential with the Federal Reserve. The lack of urgency in the BOJ's assessment suggests no immediate pressure for policy normalization, keeping the yen vulnerable to carry trade flows. USD/JPY finds technical support at 157.00 (previous week's low) with resistance at 158.20 (monthly high). The unchanged regional outlook implies the BOJ remains comfortable with current yen weakness, potentially opening the path for USD/JPY to test higher levels if US yields remain elevated.