ANZ Research discusses USD/JPY outlook after stopping out of its short USD/JPY.

"We have exited our short USD/JPY trade at a loss. This trade was placed on a tactical basis with a view that the JPY would strengthen in anticipation of further changes in BoJ policy. It did strengthen to a level of 127.23 in January but did not breach lower to the profit target set at 126.50," ANZ notes.

"We now expect that yield curve control changes will likely occur in H2 once the new governor settles in.US yields have been up, as market expectations of further Fed rate rises increased, widening the US-JP yield spread in favour of the USD," ANZ adds.