Analysts at Danske Bank see the USD/JPY as overvalued and expected it to drop to 127.00 in a three-month period. 

Key quotes: 

“USD/JPY seems fundamentally overvalued, and together with our base case of monetary policy tightening during summer; we expect the cross to drop to 127 in 3M. In the near-term, however, we could see some topside risks to the cross on the back of a relatively hawkish Fed and a dovish BoJ.”

“A rally in global commodity prices is an upside risk to the USD/JPY, as Japan is a net energy importer. Generally, upward moves in US yields for whatever reason continue to be a tailwind for the USD/JPY.”