Royal Bank of Scotland - "The IMM futures market suggests that the market remains significantly long USD/JPY, but it has tended to take profit for the last six weeks in a row after reaching its record short JPY position back on 4-Dec. The profit-taking reflects the rapid fall in the JPY and the sense of many that it was due a correction or would not be sustained as Japan policy makers failed to follow through with their rhetoric. That sentiment appears to be fading and the strong rally in the USD/JPY that began in the last two days of last week has solidified sentiment that JPY weakness is a new sustained theme for 2013.
(...) Our bias remains to sell JPY, though the market will be reluctant to chase it, having moved so far so quickly. A period of stability seems likely; base-building in the 88/90 region. Over the next month a move towards 95 seems more likely than a move below 88. We would favour buying near 90."