ING Research discusses USD/JPY outlook, and adopts a neutral bias in the near-term.

"The re-pricing of the Fed cycle and the steeply inverted US yield curve meant that US 10-year Treasury yields were dragged 60bp higher in February. Our strategy team see outside risk to 4.25% over the coming weeks, but the year-end target is 3.00%. That should be bearish for USD/JPY – but more a story for later in the second quarter and through the second half of the year. That means USD/JPY could hang around these 135/137 levels through March, with outside risk to 140 if the Fed is very hawkish," ING notes. 

"Of acute interest will be developments in Japan. Outgoing BoJ Governor Kuroda holds his last policy meeting on 10 March. Incoming BoJ Governor Ueda holds his first policy meeting on 28 April. Both could pose positive event risks for the JPY," ING adds.