The Fed's decision to stand pat might take the pressure off the dollar and support risk appetite, notes CCB Intl Securities' Mark Jolley.
The Bank of Japan must decide against a conflicting backdrop of domestic economic weakness and global geopolitical risks.
The BOJ will likely wait for the Brexit vote to pass and for some clarity on Fed rate timing, UBS senior economist Daiju Aoki says.
Saxo Bank Group's Adam Reynolds expects the BOJ to make a move this week, but he adds that the response might not necessarily weaken the yen.
The BOJ is likely to wait for global developments to unfold before making a rate move, says BK Asset Management's Kathy Lien.
Gold stayed near its highest in almost six weeks on Tuesday as worries about a potential British exit from the European Union.
Could the Bank of Japan surprise markets this week, amid uncertainty coming from both the Fed and U.K. referendum’s debate? Freya Beamish, economist at Lombard Street Research, weighs in.
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.