Recent USD/JPY price action indicates forex traders are not betting on significant surprises out of the BoJ meeting. Even the most rosy assessments are that BoJ either upgrades its outlook for the Japanese economy or announces a new, more rapid pace of asset-buying though not an all-out expansion of its easing efforts.
The bottom line is that any help BoJ can lend toward weakening the yen will be helpful for DXJ and EWJ, particularly the former, but betting on such an outcome this week may not present the best odds.
iShares MSCI Japan ETF
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of DXJ and SPY.