Economists at Danske Bank expect the USD/JPY to fall and reach the 125 level in three months.

BoJ’s monetary policy stance is still important to follow regarding USD/JPY +3M

“The development in BoJ’s monetary policy stance is still important to follow regarding USD/JPY +3M; however, it is difficult to imagine any changes in the monetary policy until at least April 28th, when the new governor will have his first monetary policy meeting.” 

“The main drivers for the USD/JPY in the next 3M are developments in US Treasury yields and the oil price.” 

“We expect USD/JPY to drop to 125 in 3M following more tightening of monetary policy.” 

“Forecast: 129 (1M), 125 (3M), 125 (6M), 125 (12M).”