Japanese wholesale prices fell 3.8 percent in the year to March, Bank of Japan data showed on Wednesday.
The country's finance minister holds the power to instruct the BOJ to take action in the currency market.
Japan's Finance Minister Taro Aso said he could take action based on a G20 agreement that excessive volatility and disorderly moves hurt stability.
When foreigners dump Japanese equities, they are undoing their currency hedges and driving the yen higher, explains Nicholas Smith, Japan strategist at CLSA.
Bank of Japan Governor Haruhiko Kuroda says the central bank won't hesitate to take additional easing steps, if needed.
Negative interest rates risk hitting consumer spending and undermining economic growth, said BlackRock CEO Larry Fink, the Financial Times reports.
Jesper Koll, CEO at WisdomTree Japan KK, says for every 5 yen of sustained appreciation, investors must cut 5 percentage points off corporate earnings.
David Fernandez, head of FICC research, Asia-Pacific at Barclays, believes officials will attempt to slow the pace of currency gains down but notes they won't use aggressive intervention.
The BOJ's foray into negative rates hasn’t yielded positive results. That’s spurring speculation the BOJ’s next attempt at easing may target stocks.
Finance Minister Taro Aso called the forex market's recent moves "one-sided", and said the rapid yen movements were undesirable.
Clients are looking at the USD/JPY pair hitting 105, says Sunrise Brokers' Japan and Asian equities head Ben Collett.
Japan's negative interest rate decision in January raised questions on whether the BOJ can achieve its 2% inflation target, says DBS Bank's senior currency economist Philip Wee.
From the Bank of Japan's perspective, the stronger yen doesn't yet require an intervention, says BNP Paribas' currency strategist Vassili Serebriakov.
The U.S. dollar fell below 108 yen for the first time in 17 months on Thursday.
The yen's rapid rise against the dollar has been so mysterious that the experts are having a hard time predicting its next move.
Valentin Marinov, managing director and head of G10 FX research at Credit Agricole, discusses the U.S. dollar/yen trade and what he expects from the Bank of Japan.
Moves in currency markets seem to suggest that some investors are tired of the quantitative easing story, according to an investor.
The U.S. dollar hit a fresh 17-month trough against the yen on doubts that the BOJ would intervene to halt the yen's appreciation.
Bank Julius Baer's Mark Matthews expects the BOJ to announce more quantitative easing through equity purchase instead of cutting rates further.
HSBC's Frederic Neumann says the yen's strength against the dollar is a signal that markets are questioning BOJ's monetary policy options.