MUFG Research discusses its reaction to the BoJ policy decision and maintains a bearish bias on USD/JPY.

"The BoJ announced an unchanged monetary policy stance this morning and announced a policy assessment that could take up to a year and-a-half to complete. The yen has weakened as you would expect although some of this sell-off may also reflect the higher yields in the US and the strong 2% bounce in the S&P 500 in response to positive earnings news," MUFG notes.

"We remain unconvinced that this move higher in USD/JPY will be sustained and would be more inclined to fade the move," MUFG adds.