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Personally I think that temples, palaces, forests and villages are the classic environments for this kind of characters. A good source of inspiration could be this beautiful game (one of my favorites): The Legend of the Mystical Ninja. This game is filled of references to Japan culture in the classic Sengoku era.

Thanks for the response! Those suggestions sound like a good start and thanks for the game recommendation will definitely check it out and see what I can do. Cheers! 

@Kokusai, check out the Edo/Three Kingdoms tilesets by BB-Bits! They have so many tilesets with east asian style, theme and buildings. There's also the popular Ninja Adventure pack by pixelboy that fits the japanese theme for your next game!

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Oh yeah, I know both of them, they are great assets, some of the best among all Itch.