Bank of America Global Research discusses its latest JPY view with clients.

"We discussed our bullish yen view with clients. Participation in the yen trade seems limited especially following the frustrating reversal in USD/JPY since September. Investors are unwilling to bleed carry on yen longs unless a near term trigger becomes more apparent," BofA notes.

Public pension fund rebalancing is viewed as the most plausible driver, with discussions focusing on potential timing and signals - we argued an unexplained sell-off in EUR/JPY (due to the size of European bond holdings vs. FX volumes), along with weekly flow data, would be key indicators. There remains scepticism around FX policy coordination, especially the government's appetite for higher rates. The December BoJ meeting will be closely watched to see if dissents against rate hikes continue," BofA adds.