Societe Generale Research discusses the JPY outlook and sees a scope for a top in USD/JPY around 135.
"If the pace of BOJ buying picks up, it will be because JGB holders think that policy is going to change. if Japan were to change policy because the bond market started to exert pressure, it would send a totemic message about the impact of Fed tightening on other central banks," SocGen notes.
"The yen’s safe-haven status is tarnished, but even if it didn’t turn around straight away, we would look to buy into weakness in case a long-term USD/JPY top was imminent. The chances of that happening before USD/JPY 135 is breached, are growing," SocGen adds.