Japanese Economy Minister Yasutoshi Nishimura said in a statement on Wednesday, the COVID-19 infection state has not developed into a major wave yet.
He added that his government is doing the utmost to avoid a state of emergency.
This comes after Tokyo Governor Koike said that the current virus situation in Tokyo is very severe.
On Tuesday, Nishimura said that the government could declare an emergency if infections grow further.
USD/JPY trades flat in a narrow range around 107.25, unperturbed by the risk-on rally in the Asian equities and broad US dollar weakness, as markets await the Bank of Japan (BOJ) decision for a fresh direction.