As always, there is no set scheduled time for the BOJ release. Expect it somewhere in the 0230 to 0330 GMT time window.

Earlier previews are here:

Snippets of previews via ING:

• Like in recent instances, we expect the meeting to be a non-event for JPY: the BoJ should unsurprisingly revise its growth forecasts lower, and its inflation forecasts higher, while signalling no changes in the policy mix.

and via Société Générale, also looking for no change to the Bank’s main planks of poilicy:

• We are looking for an increase in the core CPI (CPI excluding fresh food) forecast for FY22 from +0.9% in October to +1.1% due to the rise in crude oil prices and the depreciation in the yen. We also expect the BoJ to change its assessment that ‘the downside risk is greater’, reflecting the change currently underway in corporate pricing behaviour and inflation expectations against a backdrop of soaring raw materials prices.
• However, we believe price outlooks are highly unlikely to reach the 2% target during the forecast period to FY23. Furthermore, even if price risk assessments do not change, this does not necessarily mean there would be a change in the policy of continuing monetary easing.
• On the other hand, we do expect the growth outlook to be lowered from 3.4% in October to 2.8% in FY21, reflecting the effects of behavioural and supply restrictions due to the spread of the Delta variant over the summer, and the growth outlook for FY22 to be raised from 2.9% to 3.5%, boosted by the government’s economic measures.

USD/JPY has dropped away a little in past minutes:

The 5 year has hit a 2 year high also

The 2 year is above 1% for the first time since February of 2020.

Rising US yields were a supportive factor for the USD from mid-2021 or so – it levelled off in December as yields rose elsewhere though.

Reuters chart of DXY:

Chinese President Xi spoke at a virtual Davos meeting today and said that China remained open to foreign capital but he touched on many topics that could give market watchers reason to worry.

• Xi urged other powers to discard a “Cold-War mentality”
• “The common prosperity we desire is not egalitarianism”
• “We will first make the pie bigger and then divide it properly through reasonable institutional arrangements. As a rising tide lifts all boats, everyone will get a fair share from development, and development gains will benefit all our people in a more substantial and equitable way.”
• “All types of capital are welcome to operate in China, in compliance with laws and regulations, and play a positive role for the development of a country.”
• He warned of “serious negative spillovers” if “major economies slam on the brakes or take a U-turn in monetary policies”
• He said developing countries would also “bear the brunt” of the changes
• “Developed nations need responsible economic policies, should control spillover effects of policies to avoid impacting developing countries.”
• “The global low-inflation environment has notably changed, and the risks of inflation driven by multiple factors
• “We should remove barriers and not build walls. We should open up.”

There’s a long history of higher US rates hurting the developing world. That probably doesn’t hit in a serious way until Fed funds get to 2% so there’s plenty of breathing room. In the shorter term, inflation is going to be the much larger problem.