Danske Research maintains a bearish bias on USD/JPY over the coming months.

"USD/JPY has been pushed higher lately driven by rising US yields and dovish tones from the BoJ. The cross is trading in the 134-135 range. We still have a bearish strategic view on the cross, and expect it to trade towards 127 in 3M. In the near-term, however, we could see further upside to the cross on a relatively hawkish Fed and dovish BoJ. It is worth keeping an eye on Japanese inflation figures for March on Friday, which are likely going to show steady underlying price pressures albeit the headline inflation may fall in y/y terms," Danske notes. 

"On the BoJ meeting next week, we do not expect any changes to monetary policy. We think tweaks to the YCC are more likely to occur on either the June or the July meeting," Danske adds.