Adrian Zuercher of UBS says the Japanese yen is trading at "very attractive" entry levels at this point, and reduced quantitative easing by the Bank of Japan could push the currency higher.
Heng Koon How of United Overseas Bank says markets are expecting a lot of accommodation from the Bank of Japan, but the central bank appears to have "boxed themselves in."
The Bank of Japan kept monetary policy steady and warned that external risks could derail the country's economic recovery.
Markets in Japan, South Korea, Hong Kong and China advanced Friday as the Japanese central bank kept short-term interest rate at minus 0.1 percent and pledged to continue buying government bonds.
BOJ Governor Kuroda made the remarks in response to a question by an opposition lawmaker on whether the Japanese central bank had the necessary tools to boost stimulus to counter the pressure from a sharp yen rise.
The Bank of Japan continues to be accommodative, and this will be a tailwind for the country's markets, says Eli Lee of the Bank of Singapore.
Martin Schulz of Fujitsu Research Institute says exports and industrial production are going to be "very important" for the Japanese economy in 2019.
Central banks around the world have been facing pressure and criticism from their respective governments. Randy Kroszner of the University of Chicago Booth School of Business says the U.S. Fed is better able to withstand such comments, compared to other institutions like the Reserve Bank of India.
Shigeto Nagai of Oxford Economics says the Bank of Japan "cannot really move" to normalize interest rates before the October, when the consumption tax hike kicks in.
A source confirmed to CNBC on Tuesday that the U.S. had canceled a trade planning meeting with China, but White House economic advisor Larry Kudlow denied that report.
Sayuri Shirai of Keio University says the Bank of Japan does not want to show a clear message of normalization because that could cause foreign investors to take a long position on the Japanese yen, causing the currency to appreciate.
John Vail of Nikko Asset Management says he expects the Bank of Japan to continue to keep interest rates negative.
The fall in household spending adds to growing uncertainties about Japan's fragile economic recovery.
Wall Street has to understand that the Fed's focus on price stability is the best policy to maintain and enhance sustainable growth of demand, output and employment, Michael Ivanovitch writes.
Heng Koon How of United Overseas Bank says the dollar-yen flash crash was caused by multiple factors including safe haven plays and "increasing noise" out of Tokyo that the Bank of Japan could lower its inflation target to 1 percent.
The U.S. economy will continue to grow in the months ahead, and the Fed will change little, if anything, to its present accommodative stance, Michael Ivanovitch writes.
Several Bank of Japan policymakers warned the global economic outlook was worsening and recent oil price falls could further delay achievement of their 2 percent inflation target, a summary of opinions at the bank's December rate review showed.
The Bank of Japan said in its summary of opinions from its December monetary policy meeting that the "risks have been tilted to the downside" on the outlook for the global economy.
Japan's shrinking labor pool is resulting in a more individualized, merit-based employment system found in the West.
Bank of Japan policymakers disagreed on the feasibility of allowing bond yields to move more flexibly around the central bank's zero percent target, minutes of their October rate review showed on Wednesday.