USD/JPY steady as Japan's Katayama signals fiscal continuity, no JGB steer

USD/JPY saw limited reaction as Japan's Finance Minister Katayama reaffirmed the government's commitment to fiscal sustainability while deliberately avoiding commentary on specific bond yield levels. Her remarks, delivered alongside the ruling party's updated economic blueprint, maintain the traditional distance between the finance ministry and JGB market pricing, leaving traders to position based on underlying fundamentals rather than verbal intervention. The emphasis on securing market trust in Japan's fiscal path signals policy continuity rather than any meaningful shift, which should contain volatility in long-end JGB yields in the near term. Without fresh fiscal stimulus signals or yield curve concerns, the impact on USD/JPY remains muted. The pair continues to trade within its established range as markets digest broader BOJ policy expectations. Traders should note that the absence of any surprise fiscal expansion rhetoric removes a potential yen-weakening catalyst, keeping focus squarely on monetary policy developments and upcoming economic data for directional cues.