The BoJ left their policy settings unchanged. There has been a pick-up in speculation recently over the possibility of the BoJ bringing forward rate hike plans. However, the comments from Governor Ueda today appear to have been carefully crafted not to further encourage those expectations. 

The lack of clarity over the timing of any further adjustment in policy seems to be a step back from his comments to the Yomiuri newspaper last week when he indicated that the BoJ could have enough information about wages to judge if they will continue to rise by year-end and talked about the possibility of raising rates.

It leaves the Yen vulnerable to further weakness in the near-term. However, the move higher in USD/JPY will continue to be dampened by the heightened risk of intervention from Japan to support the Yen.