Credit Agricole CIB Research discusses the scope for another wave of Japan's MoF intervention.

"USD/JPY has unwound a bit over three-quarters of its intervention driven decline. Importantly, the rally back in the exchange rate has occurred despite a fall in oil prices as investors continue to optimistically price in a US-Iran deal. Admittedly, this optimism has been tested lately as the two sides have exchanged fire while both also say talks are proceeding. But oil prices are still significantly lower than they were before the BoJ/MOF's FX intervention," CACIB notes.

"Relative rates have been a significant driver of the move higher in USD/JPY, however, as US economic data has held up well and Japan's rates market has backed away little from pricing in a June rate hike by the BoJ. While BoJ Governor Kazuo Ueda yesterday warned that higher oil prices could change the dynamic of Japan's inflation noting that oil price rises do more than just push fuel prices higher in Japan, he stopped short of indicating what this meant for monetary policy. We continue to think that when it comes to relative rates, the bigger driver of USD/JPY is the US rather the Japan side of the equation. This dynamic would only change in the unlikely event of a hawkish hike by the BoJ," CACIB adds.