SINGAPORE, Aug 8 Reuters The yen was choppy on Thursday after a sharp drop in the previous session in a volatile week that has left sentiment fragile as investors weigh the unwinding of popular carry trades and ponder the rate path Japan39;s central bank is likely to take.

The yen was last 0.4 higher at 146.02 per dollar, having dropped 1.6 on Wednesday after the Bank of Japan39;s Deputy Governor Shinichi Uchida played down the chance of a nearterm hike in interest rates.

The Japanese currency started the week by scaling a sevenmonth high of 141.675 per dollar, a far cry from the 38year lows it was rooted at in early July as soft U.S. jobs data last week stoked recession worries and roiled investors.

A surprise hike from the BOJ last week also led investors to bail out of carry trades, in which traders borrow the yen at low rates to invest in dollarpriced assets for higher returns, helping to lift the yen.

A summary of opinions voiced at the BOJ39;s July policy meeting showed on Thursday that some board members called for the need to keep raising interest rates with one saying they should eventually be increased to at least around 1.

The contrasting opinions from the summary and Uchida on whether the BOJ will continue to raise rates or pause as a result of market volatility, underscores the delicate task facing the central bank and will likely keep investors skittish.

While the BOJ may have paused for now, it is likely to continue its journey towards normalizing…