BoJ likely to stay on hold

The Bank of Japan (BoJ) will hold its next monetary policy meeting on 6-7 August. 

BoJ is likely to maintain its current monetary easing framework. It remains data-dependent and maintains easing bias, keeping JGB yields low for the rest of the year

According to Bank of America, in light of three factors, it might stay on hold
(1) We believe it will maintain its upbeat assessment of the economy; 
(2) June CPI data indicate inflation continues to improve; and 
(3) The financial and currency markets remain stable overall. 

At BoJ governor Haruhiko Kuroda's post-meeting press conference, it will be known to what degree the BoJ perceives China and other overseas economies as posing a downside risk.

"MPM unlikely to impact JPY. Policy divergence means higher USD/JPY and lower AUD/JPY, EUR/JPY toward year-end", added Bank of America.