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

USD/JPY rose above 133 yesterday after the new BoJ governor Ueda in an inaugural news conference reiterated that the current ultra-loose monetary policy is appropriate given the economic conditions. The new governor noted that there are "positive developments" around wages and if that continues, there is "enough possibility that this would lead to a more stable 2% inflation"," Danske notes.

"After Ueda's comments yesterday, it seems likely that the BoJ will keep monetary policy unchanged on the next meeting 28 April. There is, however, a chance that the BoJ underestimates the current price pressures in Japan, and we still think that the BoJ at least have to tweak its YCC during Q2. We maintain our bearish stance on the USD/JPY," Danske adds.