USD/JPY has surged to its highest level since December 2015. Economists at ING expect the pair to push through 125 with scope to hit the 130 level.

Upside risks should continue to prevail even beyond 125

“We think a move by 125 in USD/JPY is a matter of 'when' rather than 'if' given the bond market weakness on the back of rising Fed tightening expectations and rising energy prices, which are a negative for the export-dependent Japanese economy.”

“Upside risks should continue to prevail even beyond 125 and 130 is well within reach in the near-term unless the bond environment improves.”