More from Morgan Stanley: BOJ will ease before July election

More from the US investment bank. Bloomberg reporting again.

• now expects "at least" one more round of BOJ easing before Upper House election in July
• likeliest time is the 27-28 April meeting
• March 14-15 meeting also a possibility, depending on how markets fare
• expects policy rate to be lowered by 20bps from -0.1% to -0.3%
• doesn't rule out possibility that Kuroda could attempt to promote "three-dimensional easing" combining rate cut with modest increase in JGB and ETF purchases

Previously MS had forecast no change for 2016 . This latest outlook comes from Tokyo-based senior economist Takeshi Yamaguchi.

He cites the surprise introduction of neg rates in Jan and says it revealed that BOJ's policy reaction function has evolved, broadening from primary emphasis on underlying inflation trends to include considerable emphasis on controlling financial market trends.

Meanwhile USDJPY 114.76, pausing for breath for a moment but don't expect that to last.