Stronger forward guidance to weaken the yen? - Nomura

Analysts at Nomura explained that while no changes in the BOJ’s policy stance mean the direction of yen-crosses will depend on overseas factors, stronger forward guidance could weaken JPY by reducing market expectations for a near-term rate hike by the BOJ significantly. 

Key Quotes:

"Even if the BOJ embarks on its exit strategy now (not our main scenario), new guidance on the 10yr yield target will also be considered to avoid disruptive market reactions."

"April’s policy meeting (26-27 April) will be the first meeting with the new BOJ leadership, and there will be more clarity on the new leaders’ policy stance into the meeting."

"We will look for any clues about the possible direction of the BOJ’s policy stance after the BOJ leader reshuffle."