JP Morgan Research previews next week's June BoJ policy meeting.

"The BoJ is highly likely to raise the policy rate by 25bp to 1.0% at next week's monetary policy meeting, in our view. In April, uncertainty stemming from the Middle East conflict tilted the BoJ toward holding rates, and that uncertainty has not fully dissipated. That said, incoming data and information point to a resilient economy and rising upside risks to inflation," JPM notes.

"Markets are increasingly concerned that the BoJ is behind the curve. The BoJ will likely try to deliver a hawkish message to alleviate these concerns, with Governor Ueda likely to refer to the possibility of additional rate hikes at the press conference. However, since markets have already priced in further tightening, the hurdle for the BoJ's messaging to be perceived as hawkish is high," JPM. adds.