Danske Research maintains a bearish bias on USD/JPY, and a short exposure in USD/JPY in spot targeting a move towards 130. 

"We look for USD/JPY to drop over the coming months on monetary tightening and valuation. We forecast USD/JPY at 125 in 3M. The transition to a new monetary policy framework for the BoJ will likely be gradual starting with tweaks or an abandonment of the YCC during Q2," Danske notes. 

"The three largest risks for the JPY are i) sticky US inflation ii) Japanese inflation turns out to be transitory iii) rising commodity prices.

We are short USD/JPY in our trading portfolio," Danske adds.