While not specifically a forecast for this week's Bank of Japan meeting (statement due Friday 22 September around 0230 to 0330 GMT) UBS on what's ahead from the Bank and the implications for the yen:
- Ultra-easy monetary policy could end in Japan sooner than expected.
- The wide rate differential between the US and Japan has been a key driver of Yen's weakness, so any move to close this gap would send a strong signal to investors positioning for more yen declines.
- We expect the Dollar to fall back to around 142 against the Yen by the end of the year.
