We see scope for the market to be disappointed over the pace with which the BoJ is willing to withdraw policy accommodation over the next year or so. Given also our view that the market has been too swift in pricing in Fed rate cuts next year, we see scope for USD/JPY to move back to the 150 level in the weeks ahead. 

That said, we expect the currency pair to shift lower in the second half of next year on the back of Fed rate cuts and a very gradual unwind in BoJ policy accommodation.