BNP Paribas Research discusses its expectations for next week's BoJ policy meeting.

"We expect the Bank of Japan to keep its policy unchanged at its first meeting under its new leadership. We see a good chance of the forward guidance being revised to a simpler and more neutral one, but the basic message will likely be that accommodative monetary policy will continue for now...We still expect the BoJ to adjust the yield curve control further within a few months, with the build-up in underlying inflation pressure as justification," BNPP notes. 

"We remain medium-term JPY bulls, expecting the currency to benefit from narrower USJPY rates spreads, and risks of structural repatriation or increased hedge ratios," BNPP adds.