The Yen dropped yesterday. Economists at ING discuss USD/JPY outlook ahead of the Bank of Japan (BoJ) meeting on Friday.

Market expectations for possible policy adjustments are rapidly disappearing 

USD/JPY is dangerously close to the 140.90 30 May high, which would leave the Yen vulnerable to a move to the 145 area, where Japanese authorities started to intervene last September. 

The BoJ announces policy on Friday, and the response that we are seeing in the FX market is probably a testament that market expectations for possible policy adjustments are rapidly disappearing at this Friday's meeting.