ANZ Research likes selling USD/JPY on rallies.

"Our bias remains for a stronger JPY over the medium term. Japan combines one of the strongest growth trajectories of the major economies with attractive valuation support and persistent domestic inflation pressures, a backdrop that should allow the BoJ to continue normalising policy while other major central banks are moving in the opposite direction.

"While domestic political developments may create periods of volatility, we view rallies in USD/JPY as opportunities to position for medium-term downside, particularly if the pair fails to sustain a break above the 159 area," ANZ adds.