Barclays Research discusses the BoJ policy trajectory and maintains a bullish bias on the JPY over the medium-term. 

"BoJ Governor Ueda took office on 9 April and struck a dovish tone at his press conference on the 10th , saying it was appropriate to stick with existing policies in light of current economic, price and financial conditions, but also left the door open to policy revisions, noting that any decision on YCC would consider both the costs and benefits. We retain our outlook for YCC revisions from June," Barclays notes.

"In our estimates, such revisions would create JPY appreciation pressures of up to around 5%. On this assumption, we see USDJPY falling to around 120-125 at end-March 2024. In terms of incoming data this week, we expect Japan’s core CPI for March (Fri) to show a reading of +2.8% y/y, remaining resilient despite easing from the previous month’s +3.3% due to government measures to contain energy prices," Barclays adds.