USD/JPY has already peeked above 106 but perhaps has not peaked as talk about helicopter money continues. What’s next for the pair? Here are three opinions:

Here is their view, courtesy of eFXnews:

USD/JPY: Hedge JPY Buying Around 105 Could Trigger 100 Break – Deutsche Bank

The impact of Brexit hit a delicately balanced world and pushed up the JPY as a safe currency. A speculative positioning squeeze has subsequently added a layer of support to the Y100 level.

Nonetheless, we expect ongoing hedge related JPY buying to materialise at Y105, and eventually trigger a break of the Y100 ‘where additional yen buying (dollar selling) from a number of Japanese sources is likely, including exporters, life insurers and pension funds.

Can/will policymakers intercede and stop the yen’s appreciation? Probably not. Even a huge supplementary budget and additional BoJ easing will not stop JPY strength emanating from the current global environment. USD/JPY moving all the way to 90 is possible in a bear scenario if European and Chinese risk-off concerns reassert. However, the rate could again test the 100 level in a USD bull scenario where the US economy is firming and the Fed hikes at least once this year. We expect the risk environment to swing between these scenarios.

Our USD/JPY forecast is 97 for end-3Q and 94 for end-4Q of 2016, followed by USD/JPY broadly flat lining in 2017.

USD/JPY: Bounce To Prove Fleeting; To Top Between 106 and 107 Levels – BTMU

USD/JPY – NEUTRAL BIAS – (104.00-107.00)

Market expectations of added monetary easing and fiscal stimulus have been building, with hopes of a mixture of monetary and fiscal policy management in the form of helicopter money. These expectations are likely to support the USD/JPY lower bound at around 104.00. However, even as USD/JPY has been rising, details about policies to stimulate and enhance Japan’s growth momentum have been scarce.USD/JPY may top out at between the 106.00 and 107.00 levels. Japanese exporters could also limit the upper bound for USD/JPY close to month’s end by selling USD/JPY.