FXStreet (Córdoba) - Volatility around the yen remains high on Friday. The decision of the Bank of Japan to introduce negative rates continue to affect the currency market. USD/JPY rose further on the back of a weak yen, a stronger US dollar and also boosted by US economic data. The pair printed a fresh daily high at 121.67, the strongest level since December 18, 300 pips above today’s low. Afterwards, the pair retreated sharply losing 70 pips in an hour. The decline from the highs so far found support at 120.90. USD/JYP was trading at 121.05/15, up 1.90% from yesterday’s closing price, having the best performance since October 2014. JPY weakness: Only temporary? “While the BoJ rate cut has generated some interesting moves across markets in its immediate aftermath, we think its effects are likely to fade fairly quickly. Indeed, a particularly dense US data and event calendar over the next several weeks suggests investors will refocus on USD-centred drivers to guide overall direction”, wrote analysts from TD Securities. They continue to see the Japanese yen outperforming versus the US dollar and other currencies. “We are bullish the JPY for structural reasons and see a decent chance that the BoJ’s change in strategy could backfire”, but they warn that a sustained rise above 123.56 is likely to prompt a deeper strategic review of their overall positive outlook for the yen. Analysts from Danske Bank see support for the USD/JPY in the short-term but over the long-term, they continue to project the pair range-bound in the 119-124 range and trade in tandem with global risk sentiment. For more information, read our latest forex news.