USD/JPY may well drift to the 141.15/142.00 area before next Friday's BoJ meeting – ING

Economists at ING analyze USD/JPY outlook ahead of next Friday's BoJ meeting.

Expectations of any Yield Curve Control policy tweak seem very low

Regarding the BoJ, expectations of any Yield Curve Control policy tweak seem very low (perhaps too low) given that the 30-year Japanese government bond (JGB) yield is drifting lower and the forward market prices 10-year JGB yields at 50 bps in three months and at only 55 bps in six months. These 10-year yields should be priced a lot higher were the market expecting a policy change. 

USD/JPY may well drift to the 141.15/142.00 area before next Friday's BoJ meeting.