America's economic and monetary policies are likely to become a headache for the Bank of Japan now that it is trying keep the yield on the 10-year Japanese government bond at around zero percent.

Although Japan's long-term interest rates were negative earlier this year, they have since turned positive in tandem with climbing U.S. Treasury yields after Republican Donald Trump's victory in the Nov. 8 presidential election and the Federal Reserve's first rate hike in a year this past Wednesday.

The BOJ is set to stand pat at its two-day policy meeting through Tuesday, the first since Trump's win. But market participants are paying close attention to whether the central bank will give hints on how it will deal with rises in long-term interest rates.