USD/JPY Unmoved as Japan's Katayama Reaffirms BOJ Policy Independence

USD/JPY remains largely unchanged following remarks from Japan's Finance Minister Katayama, who reiterated that specific monetary policy decisions are the Bank of Japan's domain. The comments, which echo longstanding government rhetoric, provided no fresh catalyst for yen traders. Katayama emphasized the government's commitment to avoiding market misunderstandings regarding fiscal and monetary policy coordination, while pledging to steadily reduce Japan's debt-to-GDP ratio. He also noted that rate movements are ultimately determined by market forces. The lack of new policy signals means USD/JPY is likely to continue trading within its recent range, with direction dependent on upcoming US economic data and BOJ policy expectations. Traders should watch for any shifts in BOJ rate hike pricing, as that remains the primary driver for yen pairs. Near-term, the pair may find support around key technical levels while resistance remains tied to US Treasury yield movements. The reiteration of policy independence suggests no imminent government pressure on the BOJ to adjust its stance, keeping the policy divergence narrative intact for now.