The appreciation of the yen this month, and especially this past week, has taken some of the pressure off the Bank of Japan. The partial unwind of carry trade (borrow the yen at low rates to invest in USD assets for better returns) has, on the other hand, been accompanied by selling pressure on other FX and financial assets, such as global equities.
The Bank have already announced they'll be providing more detail on their plans to reduce their buying Japanese Government Bond. But markets are also keen on a rate hike, 'pricing in' around a 65% probability .
