Bank of America Global Research summarizes its view on JPY rates/FX vs BoJ policy risks.

"We discuss how to position for BoJ risk. Fund-supply operation can buy time but risk of early policy normalization remains.

For rates, we are (1) bearish 10yr, (2) constructive front-end, (3) like 5yr-10yr steepener, (4) BEI to rebound longer-term," BofA notes. 

(5) USD/JPY can retest low after a squeeze (like RKI put), (6) but USD/JPY below 128 is a buy for long term," BofA adds.