The dollar-yen pair stabilized in the upper 155 range during morning Tokyo trading, standing at 156.07 at midday after swinging between 155.29 and 156.17. Early dollar selling pushed the rate lower as U.S. yields stalled and expectations for an early Federal Reserve rate hike faded, but dip-buying emerged on views the pair had become undervalued after this week’s sharp decline, lifting it back toward 156.09 by midday without a clear trend. EUR/JPY firmed to 181.47 at midday and briefly made a fresh intraday high at 181.52, while EUR/USD held near $1.1627 in a roughly 10-pip range. Finance Minister Satsuki Katayama denied speculation that U.S. Treasury Secretary Bessent had made demands, saying none had been made, and said she was watching rising interest rates with a high level of vigilance. Vice Finance Minister for International Affairs Atsushi Mimura said Japan’s currency posture was unchanged and that authorities remained in a state of readiness while staying in constant communication with U.S. officials. July household spending fell 3.6% year-on-year, well below the 1.7% decline expected, underscoring soft consumption and adding uncertainty around Bank of Japan policy. Market focus remains on U.S. yields and the Japan-U.S. policy gap, with dip-buying supporting dollar-yen after the weekly slide even as softer U.S. yield expectations limit upside; the yen’s earlier move to around 156.34 had marked a one-month high amid BOJ hike speculation and carry-trade unwinding.