Forex Flash: USD/JPY seems prone to disappointment ahead of BoJ - Westpac (Barcelona) - The Bank of Japan’s monetary statement, due on Tuesday (the meeting starts today), "is unlikely to do anything beyond the 2% target, maybe a cut in the interest on excess reserves (from 0.1% to 0) and another extension of asset purchases, probably JPY10trn or so" notes Westpac currency strategist Sean Callow.

"More aggressive action seems likely to require a new governor, due in April. USD/JPY thus seems to be prone to disappointment on the week, which is likely to cause some collateral damage to AUD, NZD and EUR via yen crosses" Sean adds.