USD/JPY Falls as BOJ Hawks Takata and Tamura Push for 75bps Rate Target

USD/JPY declined sharply following the Bank of Japan's latest policy decision, where board members Takata and Tamura dissented by voting to raise the short-term interest rate target to 0.75% from the current 0.50%. This hawkish stance from two influential policymakers signals growing momentum within the BOJ for more aggressive tightening, contrasting with the dovish expectations from other major central banks. The dissent suggests the BOJ may accelerate its normalization path in upcoming meetings, particularly if inflation remains elevated above target. Market participants are reassessing yen positioning, with the currency gaining strength across the board. Technical levels show USD/JPY breaking below key support, with immediate focus on the next support zone. The hawkish dissents reinforce Japan's divergent monetary policy trajectory, potentially establishing a sustained bullish trend for the yen against currencies facing easing cycles.