When is the BoJ decision and how could it affect USD/JPY

The Bank of Japan (BoJ) is due with their Interest Rate Decision and Monetary Policy Statement, and the flow of information is expected to begin between 03:00 and 03:30 GMT. 

The BoJ is widely expected to keep their key rates on hold at -0.1% and their yield curve control untouched. The BoJ governor, Haruhiko Kuroda, has been hard at work verbalizing the central bank's commitment to the current levels and policy targets until Japanese inflation reaches their 2% target, and it is unlikely the BoJ will be budging any time soon.

How might the Monetary Policy Statement affect USD/JPY?

The Yen has been steadily gaining against the US Dollar as JPY bulls position themselves for the central bank's eventual tightening of policy, and a lack of movement from the BoJ may discourage some buyers and send the Yen lower.

As FXStreet's own Mario Blascak notes, "The only dissenter within the nine-member MPC was Mr. Takaoka who considered that, if there was a delay in the timing of achieving the price stability target due to domestic factors, the BoJ should take additional easing measures and that it was necessary to include that in the text. The main reason for the BoJ to stay pad on monetary policy in March is the inflation rate. Although inflation is moving upwards in Japan, it is still way below the 2% inflation target."

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About the BoJ Interest Rate Decision

BoJ Interest Rate Decision is announced by the Bank of Japan. Generally, if the BoJ is hawkish about the inflationary outlook of the economy and rises the interest rates it is positive, or bullish, for the JPY. Likewise, if the BoJ has a dovish view on the Japanese economy and keeps the ongoing interest rate, or cuts the interest rate it is negative, or bearish.