The negative rates policy won't work because Japanese consumers and firms are not inclined to boost consumption, says UBS WM's Kelvin Tay.
Gold rose for the fourth straight session and hit its highest since mid-May on Monday, driven by rising investor risk aversion.
The safe-haven yen firmed broadly on Monday, hitting a three-year peak against the euro and sterling and a six-week high versus the dollar.
Fund managers have lost faith in Prime Minister Shinzo Abe's efforts to kick start the Japan's economy, a new survey found.
The BOJ is expected to fail in any attempts to weaken the yen, explains Frank Troise from Leonteq Securities, Singapore.
Central banks are essentially out of ammunition, with negative rate policies spurring greater savings, not growth, said the Allianz's chief economist.
Stocks are getting closer to all-time highs, and bond yields, which move opposite prices, are near their lows of the year.
Lenders in Europe and Japan are rebelling against their central banks' negative interest rate policies, the Financial Times reports.
The Fed's policy has caused drastic yen movements, says TIAA Global AM's Melissa Otto, who shares that Oriental Land and Kao are her top stock picks.
What can Japan do then? There are two more demand components that Tokyo could work on: Government spending and exports.
Asian markets were mostly higher Friday as markets awaited cues from U.S. jobs data on whether the Fed will pull the trigger on a rate hike in June.
Kit Juckes, global head of foreign exchange strategy at Societe Generale, says the yen needs a stronger economy to have sustainable strength, in light of the sales tax hike delay announcement out of Japan.
The Brexit vote will overshadow other risks and could spur the Fed to delay a rate hike, said Axel Weber, chairman of UBS and a former central banker.
When the Fed finally hikes rates, most likely in September, these two asset classes will reduce risk and provide a boost, says Chris Gaffney.
Investors shouldn't forget about these important factors when investing this summer, two analysts say.
Japan will delay its planned sales tax hike for a second time, Japan's Prime Minister Shinzo Abe announced Wednesday.
The dollar was mostly flat against a basket of major currencies after U.S. data failed to support expectations for a June or July Fed hike.
Japan's economic data improved in April, but analysts don't think that will deter Prime Minister Abe's apparent drive to delay a planned tax hike.
Claudio Piron of BofA Merrill Lynch Global Research explains why the dollar-yen pair will likely head higher if the consumption tax hike is delayed.
The dollar reached a one-month high against the yen on Monday, after Fed Chair Janet Yellen fanned expectations the Fed would raise U.S. rates soon.