Danske Research discusses USD/JPY outlook in light of entering a short exposure (spot ref: 134.89), with a target at 130.00, and a stop at 137.50.

"We think it is time to position for a drop in USD/JPY and recommend selling the spot @134.89 with a soft profit target of 130.00 and a hard stop of 137.50. We stress this is a short-term tactical position that we aim to hold for 3-4 weeks," Danske notes. 

"We now enter a period, where focus increasingly turns to JPY positive factors starting overnight with the release of January's CPI in Japan and Bank of Japan (BOJ) governor nominee Kazao Ueada's first hearing and culminating on 10 March with the Bank of Japan where more monetary tightening could be in the cards," Danske adds.