Monetary policy argues for further weakness of Yen, analysts at Erste Group Research report.

There is still a lot to be said for the Euro from a fundamental perspective

The Bank of Japan's control of the yield level of 10-year Japanese government bonds (within a target corridor of 50 bps above or below a yield level of 0%) continues to be the determining factor for the development of the JPY. By contrast, German 10-year government bonds are currently comparatively attractively priced with a yield level of around 2.6%. Since core inflation in both currency areas is close to the same level, there is still a lot to be said for the Euro from a fundamental perspective. 

The Yen's weakness can therefore continue, provided there are no fundamental changes in the BoJ's monetary policy.

In the event of an escalation of crises, the Yen can also quickly strengthen against the Euro again at any time.