Yen Holds Steady Against Dollar Ahead of Jackson Hole Symposium

Lead: With the Jackson Hole global central bank symposium entering its countdown, the USD/JPY pair remains in a consolidation pattern, currently trading around the 159.30 level, with investors broadly adopting a wait-and-see stance.

**Market Focuses on Waller's Policy Signals**

Federal Reserve Chair Kevin Waller is scheduled to deliver a speech at the Jackson Hole symposium on Friday, marking his first appearance at the annual gathering since succeeding Powell, drawing significant market attention. Compared to his predecessor, Waller has provided fewer clear signals on the future path of interest rates, making his remarks harder to predict and potentially carrying greater market impact. Traders will closely watch whether he remains concerned about inflation or believes current rate levels are sufficient to bring inflation back toward the 2% target.

**Inflation Outlook Becomes Key Variable**

Inflation remains one of the Fed's foremost concerns. Rising energy prices and other factors have made it more difficult to return inflation to the 2% target. Waller has explicitly stated that the 2% inflation target remains critically important. Should he hint that rates need to stay elevated for a longer period, or even signal further hikes, the market could experience significant volatility. This policy uncertainty leaves the USD/JPY pair lacking a clear directional bias ahead of the meeting, maintaining a narrow trading range.

**Consolidation Awaits Breakout**

During Thursday's European trading session, the USD/JPY pair fluctuated narrowly around 159.30, with market activity remaining subdued. Analysts note that despite the pair's earlier pullback, dip-buying interest persists, limiting downside room. With Waller's speech being the key risk event on the horizon, both bulls and bears are reluctant to place aggressive bets, and the pair may extend its current consolidation pattern in the near term.