Investors may be underestimating the need to normalize policy in Japan, and this will eventually benefit the Yen

These expectations are fueled by Japan's elevated inflation and the illiquidity of its bond market. Although new Governor Kazuo Ueda is expected to keep the current policy for his first meeting, some believe an adjustment could come as early as June or July.

Despite these speculations, a Bloomberg survey revealed 87% of economists expect no policy change in the upcoming meeting. A shift in Japan's monetary policy could have significant implications for FXY, potentially providing a favorable environment for those bullish on the yen.