Forex Flash: A Y10tn BoJ APP expansion should send the Yen higher - NAB (Barcelona) - What the BoJ announces tomorrow will most likely set the tone for the Japanese Yen this week. The focus is on the size of the Asset Purchase Programme as well as on the statement referring to the 2% inflation target.

From NAB strategists: "Another time and quantum-limited expansion of the APP (say another Y10tn) will underwhelm and probably send the JPY higher. In contrast an open-ended commitment to continue expanding the balance sheet until objectives are met (similar to the Fed’s QE programme) has much more chance of underpinning last week’s move up onto a Y90 handle on USD/JPY."