Some of the JPY crosses (particularly EUR/JPY) are starting to look a bit ‘toppy’ and if the crosses turn lower then USD/JPY will also struggle to maintain any bullish momentum. The big sell orders at 104.20/50 certainly capped last week and I wouldn’t be surprised to see a short-term bearish bias emerge.
That said, further BOJ easing will keep the USD/JPY bulls interested and dips will be eagerly bought. Perfect recipe for range trading; it’s what the FX market does best.