USD/JPY drops as hawkish BoJ signals from Ueda & Takata boost yen

USD/JPY came under significant selling pressure during the Asia-Pacific session as hawkish commentary from Bank of Japan officials strengthened the Japanese yen. BoJ board member Takata flagged inflation overshoot risks and stated that Japan is approaching its 2% inflation target, backing further gradual rate hikes. Governor Ueda's remarks reinforced the hawkish tone, sending clear signals that additional monetary tightening remains on the table. Elsewhere in the region, the Singapore MAS survey projected 2026 GDP at 3.6% with rising odds of April tightening, while the Bank of Korea's dot plot suggested a prolonged hold at 2.50%, supported by robust chip exports. China's Two Sessions drew attention with markets focused on growth targets, fiscal stance, and 15th five-year plan signals. Toyota also made headlines with a planned $19 billion share unwind in a landmark governance reform. For USD/JPY traders, the hawkish BoJ narrative strengthens the case for further yen appreciation, with near-term focus on upcoming Japanese economic data and any follow-through from BoJ officials confirming the rate hike trajectory.