Analysts at Bank of Tokyo Mitsubishi explained that USD/JPY has recently pulled back to the 109 level due to relaxing in USD selling and JPY buying. Key Quotes: "JPY non-commercial sector long positions at the CFTC are still at recent highs, and some investors may pull back. March US retail sales did not encourage USD buying. Fundamental and underlying flows still point to a USD/JPY drop." "The past two months, market reactions have clearly reflected weak confidence in QQE with negative interest rates." "Extra monetary easing and a more negative policy rate are unlikely to support a USD/JPY rise. Japanese lifers will release their FY16 investment strategies toward the end of the month. We think they will be less active with JPY selling and currency hedging amidst the recent fragile risk sentiment." For more information, read our latest forex news.