"Bank of Japan's Comments Spark Yen Surge and Dollar Uncertainty"

Bank of Japan board member Hajime Takata hinted at a potential interest rate hike and the end of negative interest rates, leading to a drop in USD/JPY. He emphasized the nearing of the 2% inflation target and the need for a flexible response in monetary policy, including potentially abandoning the yield curve control framework and committing to overshoot on inflation. These comments suggest a bias towards sooner rather than later for rate moves, with market pricing not at 100% until June, and come amid increasing verbal intervention to stem yen selling.