USD/JPY awaits BOJ, looking bullish - Scotiabank

Analysts at Scotiabank explained that JPY is trading with a moderately bearish bias, testing fresh two week lows ahead of the BoJ policy decision. 

Key Quotes:

"Relative central bank policy favors continued weakness in JPY as we consider the outlook for divergence between a hawkish, tightening Fed and an exceptionally dovish and accommodative BoJ. Policymakers are rumored to be reluctant to make any material change to the statement tone as they seek to avoid any unwanted tightening in financial conditions. Yield spreads have widened considerably at both the short and longer-end of the curve, and appear set to deliver continued weakness in JPY."