In the view of Jane Foley, Senior FX Strategist, the Bank of Japan (BoJ) is unlikely to deviate from the current accomodative way as this would cause an unwanted appreciation of the yen. 

Key quotes

“For now, the BoJ will want to promote an image of a Bank focussed on policy stimulus. Over 60% of the economy is now in a state of emergency due to an increase in covid cases and any divergence from the accommodative paths set by the ECB and the Fed could result in an unwanted appreciation of the JPY. Any changes in BoJ policy and in the JGB curve could have an impact on the JPY.”

“We currently expect USD/JPY to trade mostly in the 103/104 range in the months ahead.”