Economists at ING analyze USD/JPY outlook ahead of next Friday's BoJ meeting.
Regarding the BoJ, expectations of any Yield Curve Control policy tweak seem very low (perhaps too low) given that the 30-year Japanese government bond (JGB) yield is drifting lower and the forward market prices 10-year JGB yields at 50 bps in three months and at only 55 bps in six months. These 10-year yields should be priced a lot higher were the market expecting a policy change.
USD/JPY may well drift to the 141.15/142.00 area before next Friday's BoJ meeting.