Can USD/JPY go higher? - Nomura

Analysts at Nomura explained that as bond market implied volatility remains muted, USD/JPY and cross yens may benefit from higher foreign yields, while JGB yields remain low owing to the BOJ’s yield curve control policy. 

Key Quotes:

"Further upside in USD/JPY and EUR/JPY is possible as long as rises in foreign yields are smooth."

" Albeit at a low level, implied volatility in USTs and JGBs has risen since the middle of last week, and we will monitor any changes in bond market volatility as a result of the forthcoming G3 central bank meetings."