The Japanese yen edged slightly beyond 158 per dollar on Thursday but continued to trade in a narrow range as investors looked ahead to next week’s Bank of Japan policy meeting. Markets widely expect the BOJ to leave interest rates unchanged for now, with a potential rate hike in December amid persistent inflationary pressures. On Wednesday, BOJ Deputy Governor Ryozo Himino stated that underlying inflation is nearing the bank’s 2% target and warned against postponing necessary policy changes, echoing the hawkish tone set by Governor Kazuo Ueda earlier in the week. Still, the yen remained under pressure from carry trades, as Japan’s comparatively low interest rates continued to undermine the currency’s appeal. Moreover, the BOJ’s cautious and gradual approach to tightening is viewed as insufficient to materially narrow the interest rate gap between Japan and other major economies.