Analysts at Rabobank suggest that a steady policy from the BoJ this week could lead to a modest move lower in the value of USD/JPY.

• "Due to the impact of a flat yield curve on the profitability of commercial banks, the BoJ operates its huge QQE policy with a ‘yield curve control’ component.
• Although Japanese banks have reportedly ramped up their exposure to good quality US credit, there is still the increased risk that Japan will directly import any stresses suffered in the US economy going forward.
• Given speculation of a possible recession in the US next year, this presents another reason for the BoJ to leave a rate cut on the table."