• USD/JPY weakens to near 146.05 in Thursday’s early Asian session, down 0.45% on the day. 
• BoJ Summary of Opinions from the July meeting stated that some members suggested a neutral rate of at least 1%. 
• Markets continue to price in a 50 bps Fed rate cut in September.

The USD/JPY pair hovers around 146.05 after retreating from a weekly high of 147.90 during the early Asian trading hours on Thursday. The downtick of the pair is backed broadly by the softer US Dollar (USD) and the safe-haven flows. Traders await the weekly US Initial Jobless Claims on Thursday for fresh impetus. This report could provide confirmation about the economic and employment market conditions in the United States. 

The Bank of Japan's (BoJ) Summary of Opinions at the Monetary Policy Meeting on July 30 and 31, released on Thursday, showed that the Japanese central bank lays the groundwork for further policy normalization, although members did not specify the timing and pace. BoJ members suggested a neutral rate of at least 1% as a medium-term goal. The board members also noted that they expect a small hike to have no tightening effect. 

On Wednesday, the BoJ Deputy Governor Uchida said, “I believe that the bank needs to maintain monetary easing with the current policy interest rate for the time being, with developments in financial and capital markets at home and abroad being extremely volatile.” Uchida suggested the BoJ would not hike if markets were unstable. The dovish comments from Japanese authorities are likely to undermine the JPY for the time being. The BoJ is now only expected to hike 15 basis points (bps) over the next 12 months, down from 50 bps expected right after its hawkish hike.