Credit Agricole CIB Research discusses USD/JPY outlook and sees intervention risks intact on a move towards 160.

"USD/JPY has potentially settled back into the 155- 160 range given the failure of the exchange rate to decisively break the 155 level. There is still the threat of FX intervention by the BoJ on a move back towards 160 in USD/JPY, in our view," CACIB njotes.

"In the coming week, US core PCE and non-farm payrolls data as well as Japan Tankan and Tokyo CPI data will be key drivers of the JPY along with global energy prices. Accelerating Tokyo headline, core and core-core inflation back above the BoJ’s 2% target will keep pressure on the central bank to raise rates further. The central bank would remain cautious in raising rates, however, if the Tankan data were to show a weakening economy.

Investors will remain cautious about pushing USD/JPY back above the 160 level for fear of intervention by the BoJ," CACIB adds.