Further JPY depreciation looks unlikely

The JPY appears to be caught between two powerful and opposing forces, on one side, the BoJ's QQE program and portfolio outflows by Japanese investors. On the other, JPY's extraordinary cheapness, which is attracting substantial foreign investment. 

"Between these forces, USD/JPY is expected to continue to range trade around 123, with risks on both sides", says Barclays.

While across-the-board USD rally into the Fed liftoff and potential further BoJ easing may exert upward pressure, deterioration in risk sentiment poses downside risk for the pair.