Royal Bank of Scotland - "We should continue to expect Japan officials to attempt to manipulate the JPY through their comments on both sides. Talking JPY down if it rises and up of it falls. My preferred strategy for the short term is to expect a range between 88/95 with a view to buy for the longer term as the relative fundamentals continue to argue for a weaker JPY over the medium term.
(...) The downside risk for USD/JPY is underappreciated in the street. Adding to downside risk is the potential for a correction in global risk appetite. There are a number of potential trigger points. Weak European economic data and political developments in Italy and Spain and the US fiscal debate come to mind. Equities and credit products have unwound a good deal of the tail risks discounted in their markets, and are thus more vulnerable. If risk appetite dries up, sizeable shorts in JPY will be squared up.
(...) Our preferred strategy is to wait for a decent correction in JPY and sentiment before re-establishing JPY shorts (between 88 and 90). We may seek short term opportunities to sell USD/JPY in the near term."