Nomura Research discusses JPY outlook and the scope for intervention.

"Since USD/JPY briefly rose above 160 last Friday , the Japanese authorities have stepped up verbal intervention . While growing caution over actual intervention is seen as limiting further upside in USD/JPY, unless there is a clear improvement in the Middle East situation and a more substantial correction in crude oil prices, upward pressure on USD/JPY is likely to persist,": Nomura notes.

"Fundamentals, including the BOJ Tankan, also remain solid , and if this week’ s BOJ branch managers’ meeting increases the likelihood of an April rate hike, JPY is likely to find near-term support. On the level at which intervention may occur, caution is warranted over the possibility of actual JPY-buying intervention in the 161–163 range," Nomura adds.