Credit Suisse discusses USD/JPY outlook and maintains a sell-on-rallies bias.

"Our USDJPY view in our Q1 Outlook was to sell rallies, with an initial target at 125.00 and a possible extension as far as 120.00 in high-vol environments. We see no reason to change this, despite the fact that the BOJ stood its ground this time," CS notes.

"The odds are very high that the March meeting will also be “live” despite Kuroda’s efforts this week, so there is no reason to throw away the blueprint. Next on the slate is Japan Dec CPI due on 20 Jan (local time) where the market expects CPIF to rise to 4.0% from 3.7% previously. Any upside surprise would again set tongues wagging," CS adds.