Kumiko Gervaise, FX Market Analyst at Gaitame.com Research Institute, on USD/JPY and EUR/JPY

One of the key events is the BOJ monetary policy meeting that will take place from 3 to 4 April. This is the first meeting for the new BOJ Governor Haruhiko Kuroda. The Japanese Yen has already fallen to a considerably low level due to the market's expectations that the BOJ will implement an unorthodox monetary policy. However, the most important point is whether the governor disappoints the market after the meeting or whether he is able to satisfy the anticipations. In case Mr. Kuroda fails to meet expectations, the Yen could possibly switch to a "buy-back" mode.

On the US side, I consider the negotiations on spending cuts to be the most important factor. If the negotiations are not settled, the collateral effects on the US economy might show up in May at the earliest, putting pressure on the US Dollar.

In case Mr. Kuroda acted in line with the market's anticipations of the monetary policy, and assuming the US economy remains strong, USD/JPY should be able to touch 100 yen in the second quarter. Otherwise, I would forecast that USD/JPY may temporarily decline to 90 yen.

Concerning the Euro, we need to monitor closely the headlines and events related to such countries like Cyprus, Greece, Italy and Spain. "Nothing special" may give a boost to the shared currency. However, the Euro would decline against the Yen should the market find some new risks in Europe. In such a case, I believe that EUR/JPY has the possibility to break under 115 yen.

We see USD/JPY trading at 92 yen at the end of the April-May period, while our outlook for EUR/JPY is 116 yen.