Yen Stabilizes on BoJ Mixed Signals

The Japanese yen stabilized around 146.5 per dollar on Thursday after sliding for two consecutive sessions as investors continued to evaluate the outlook for the Bank of Japan's monetary policy. On Wednesday, the yen fell nearly 2% following comments from BoJ Deputy Governor Shinichi Uchida, who stated that the central bank would not raise interest rates in unstable market conditions. Meanwhile, the summary of opinions from the BoJ's July policy meeting indicated that some members advocated for further rate hikes, with one member suggesting that rates should eventually be raised to at least 1%. Earlier this week, the yen had surged to a seven-month high due to recent currency interventions from Tokyo and a hawkish shift in BoJ monetary policy, which prompted a significant unwinding of yen carry trades. On the economic front, data revealed that Japan's current account surplus widened in June as export growth outpaced imports.

The first resistance level is at 148.00. If this level is surpassed, the next targets will be 149.30 and 150.90. On the downside, the initial support is at 145.60; if this level is breached, the next support to watch will be 144.00 and 141.70.