• USD/JPY gains ground due to rising odds of a smaller rate cut by the Fed in September.
• BoJ board member Naoki Tamura stated that there is no predetermined plan regarding the pace of future rate hikes.
• CME FedWatch Tool suggests the odds of a 50 bps rate cut by the Fed have decreased to 15.0%.

USD/JPY breaks its two-day losing streak, trading around 142.90 during the European hours on Thursday. The Japanese Yen (JPY) remains subdued following the remarks from the Bank of Japan (BoJ) board member Naoki Tamura.

BoJ board member Tamura stated that there is "no preset idea on the pace of further rate hikes." Unlike in the US and Europe, Japan's rate hikes are expected to proceed more gradually. The exact timing for when short-term rates in Japan might reach 1% will depend on the economic and price conditions at that time.