Following the Bank of Japan's decision to leave the policy settings and forward guidance unchanged at the January policy meeting, BoJ Governor Kazuo Ueda said that the Japan's economy is expected to gradually pick up ahead, per Reuters.

Ueda added that the likelihood of achieving the 2% inflation target is rising gradually, while saying that they must continue to carefully watch financial and foreign exchange market moves and the impact on prices and the economy.

He further reiterated that they won't hesitate to take additional easing measures if necessary and noted that they will be closely watching the outcome of spring wage negotiations.

Market reaction

USD/JPY stays under modest bearish pressure following these comments and the pair was last seen losing 0.2% on the day at 147.83.