TD say still plenty of room for yen gains, see as low as 120 by the end of March

TD analysts on the yen, some broief snippets from a longer piece.

First, on monetary policy divergence between the Federal Reserve and Bank of Japan:

• With the Fed ceding leadership on policy to the ECB and the BoJ, JPY trading bias remains asymmetric and with considerable room for gains.

Targeting:

• We expect USD/JPY to register a 120-125 handle this quarter
• We think rallies to 133/134 in will make for an attractive short

Meanwhile, on EUR/yen:.”

• We are biased to appreciable strategic EUR/JPY downside towards 130 in the coming months

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ps. previewing today and the BOJ meeting this week:

Bottom pickers on USD/JPY are having a really tough time: