Citing four people familiar with the Bank of Japan’s (BoJ) thinking, Reuters reported on Friday that the Japanese central bank is likely to maintain the ultra-loose monetary policy, by making no change to interest rate targets and yield allowance band, at next week's meeting.

“The BoJ likely to maintain dovish policy guidance, may discuss tweaking reference on COVID-19 impact in coming meetings,” the sources added.

Market reaction

At the time of writing, USD/JPY is battling 134.00, having reversed losses from daily lows of 133.71. The above headlines could help the rebound in the major.