USD/JPY consolidates around 146.30 as investors seek current status of US-Japan trade talks

• USD/JPY wobbles around 146.30 as investors await fresh headlines regarding US-Japan trade negotiations.
• US President Trump stated earlier that Tokyo restricts buying rice and autos from Washington.
• FOMC minutes show that interest rate cuts would come if tariff-driven inflation proves to be modest.

The USD/JPY pair trades sideways around 146.30 during the European trading session on Thursday. The pair consolidates as investors await fresh news regarding trade talks between the United States (US) and Japan.

Earlier this week, US President Trump imposed 25% tariffs on imports from Japan, which will come into effect on August 1. The size of tariffs was lower than what Trump announced at the start of month, while stating that Tokyo behaves stiffly over agriculture imports from Washington and disparity over automotive trade.

"We've dealt with Japan. I'm not sure if we're going to make a deal. I doubt it. They're very tough. You have to understand they're very spoiled," Trump said and warned of 30%-35% tariff rate.

Meanwhile, Japanese Prime Minister Shigeru Ishiba said on Tuesday that Tokyo would continue negotiations with the US to seek a mutually beneficial trade deal, Reuters reported.

During the European trading session, the US Dollar trades stably as Federal Open Market Committee (FOMC) minutes for the June 17-18 policy meeting signaled that members are unlikely to support interest rate cuts in the near term.

The US Dollar Index (DXY), which tracks the Greenback's value against six major currencies, trades calmly near 97.40.

The Fed minutes indicated that monetary policy adjustments would appropriate later this year if tariff-driven inflation proves to "modest or temporary".