USD/JPY drifts higher above 149.50 as Trump speaks

• USD/JPY edges higher to around 149.75 in Wednesday's Asian session, up 0.50% on the day. 
• Traders brace for Trump's speech for fresh impetus. 
• Fears about weaker US economic activity and a hawkish stance from the BoJ might cap the upside for the pair. 

The USD/JPY pair attracts some buyers to around 149.75 during the Asian trading hours on Tuesday. The US Dollar (USD) gains ground as traders await more cues from US President Donald Trump's speech. Later on Wednesday, the US ISM Services Purchasing Managers Index (PMI) for February will be in the spotlight. 

Meanwhile, the US Dollar Index (DXY), a measure of the USD's value relative to its most significant trading partners' currencies, currently trades around 105.75, adding 0.18% on the day. However, the upside for the Greenback might be limited amid concerns over slowing economic growth and the impact of tariffs.

"Fears about weaker U.S. and global economic activity are manifesting in the markets, with cyclicals driving the sell-off," said Kyle Rodda, senior financial markets analyst at Capital.com.

The hawkish remarks from the Japanese authorities migth provide some support to the Japanese Yen (JPY) and create a headwind for USD/JPY. The BoJ Deputy Governor Shinichi Uchida said on Wednesday that the Japanese central bank will continue raising interest rates if its economic forecasts are met. Uchida added that Japan's exit from its long-standing ultra-loose monetary policy has only just begun.

The BoJ is widely anticipated to continue hiking this year, supported by improving economic conditions, rising prices, and stronger wage growth, which align with the Japanese central bank's policy normalization efforts.