USD/JPY Steady as BOJ Holds Rates at 0.75% Amid Middle East Tensions

The Bank of Japan held its benchmark interest rate unchanged at 0.75% on Thursday following an 8-1 policy board vote, keeping USD/JPY in a consolidation phase as geopolitical risks from the ongoing Middle East conflict temper expectations for further tightening. The near-unanimous decision signals that BOJ policymakers remain cautious about the global economic outlook, particularly as US-Iran tensions inject uncertainty into trade flows and risk appetite. The lone dissenter likely favored a more hawkish stance, reflecting Japan's persistent inflationary pressures and wage growth momentum seen in recent spring labor negotiations. For USD/JPY, the BOJ's hold removes a potential catalyst for yen strength in the near term, with traders now turning attention to US economic data and Federal Reserve commentary for directional cues. Key support sits near the 148.00 level, while resistance around 150.50 could cap upside moves. The geopolitical backdrop continues to support safe-haven yen demand, creating a tug-of-war between BOJ policy divergence and risk-off flows.