Analysts are also pointing to increased measures after the government raised the national sales tax to 8% from 5% in April, which has curtailed consumer spending and manufacturing.
“Leading into the BoJ meeting, concerns are rising that the central bank’s forecasts will be revised lower and the tone will provide a hint of dovishness,” Camilla Sutton, chief foreign exchange strategist at ScotiaBank, said in a note.
Japan will release its BOJ minutes Thursday, July 17.
Meanwhile, on the other side of the yen trade, the U.S. dollar is expected to strengthen as the Federal Reserve pulls back from stimulus measures and the economy continues to expand.
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Max Chen contributed to this article.