BoJ: lower expectations of easing next week - Nomura

Analysts at Nomura suggested that market expectations for easing into next week’s BOJ meeting are much lower than expectations into previous meetings.

Key Quotes:

"A small disappointment is still likely after a noeasing decision, which could lower USD/JPY slightly by about 0.5% or so.

However, we judge that a muted reaction to a BOJ disappointment would increase the potential for gradual JPY weakness in the medium term, as JPY would be able to weaken smoothly in a low-volatility environment, when external headwinds turn to tailwinds."