Many shorts in the JPY crosses have been forced to cover over the last week and a break today above 134.50 in EUR/JPY might well be the last straw. GBP/JPY and AUD/JPY have led the way up so far and both pairs took out important resistance levels overnight but EUR/JPY is the main lead pair, and if it breaks higher we might well see a major (read 10%) short covering rally.
Sentiment is turning in the market although I suspect that it will be a false dawn.
Good luck today.
