FXstreet.com (Barcelona) - In a Nomura survey of global investors conducted in early January, "over 70% of foreign investors expected the BOJ to embark on foreign bond purchases" note Yujiro Goto and Yunosuke Ikeda, Nomura strategists.

However, such event, according to Nomura analysts, "would largely depend on the appointment of Mr. Kazumasa Iwata, the most vocal proponent of the policy option, as the new governor" the bank notes.

The other academic-background option would be Mr. Ito, who has taken, as Nomura notes, "a relatively flexible approach to schemes involving foreign bond purchases."

Accordingly, "in the event that the appointment of either Mr. Iwata or Mr. Ito to the new governorship becomes a real possibility, the FX market is likely to further price in foreign bond purchases by the BOJ, in our view" Nomura adds.

Nomura thinks the expectations alone "could lead to further yen depreciation against the dollar in the near term", potentially breaking through 95.00.