More than half of Bank of Japan watchers surveyed predicted the central bank would decide to scale back its government bond purchases at a meeting next week, and a growing number also expect the central bank to raise interest rates in July.

Many Bank of Japan watchers said officials are likely to prioritize cutting bond purchases before pushing up short-term benchmark rates.

Reducing bond purchases is the best way to curb yen weakness at this point. If it doesn't, the yen risks a plunge.

There's little room for the Bank of Japan to send a dovish message this time around.