Nomura Research recommends maintaining USD/JPY exposure in spot targeting a move towards 127 by mid-February.

"USD/JPY is likely to remain volatile, but there is no change in our view that USD/JPY has already shifted to a downtrend. We thus recommend maintaining USD/JPY short exposure," Nomura notes. 

"The November current account date release scheduled on Thursday is expected to return to a seasonally adjusted surplus, which would suggest JPY-selling pressure has peaked. We have raised the conviction level in short USD/JPY recommendation earlier this week to 4 out of 5 from 3, targeting 127 by mid-February," Nomura adds.