FXStreet reports that according to economists at Danske Bank, USD/JPY has further to go.

“We think USD/JPY has further to go, as the US economy will catch up to Asia as it opens up and outpaces Asia and particularly Japan in the vaccine race, although the recent leap has capped upside potential. This will continue to press for higher US yields and BoJ will remain reluctant to let JGB yields drift much higher with inflation so far off target. To take USD/JPY back towards 100, we need a change in risk sentiment causing US rates and commodities to decrease again.”