Danske Research discusses USD/JPY outlook and sees a scope for further gains over the coming months.
"The JPY slide continued yesterday despite easing headwinds with lower oil prices and US yields below last week's peak. The pressure on JPY currently comes from markets realising that the Bank of Japan (BoJ) is not planning on giving in to the global pressure for higher yields," Danske notes.
"The yield curve control remains in place. Yesterday PM Kishida confirmed his backing of BoJ's easy policy stance, which only fuels this impression. USD/JPY traded through 136.5 yesterday, its highest since 1998, the last time of intervention to support JPY. We expect JPY headwinds to remain in place over the coming months," Danske adds.