MUFG Research discusses USD/JPY outlook and maintains a tactical neutral bias, expecting the pair to trade to stay contained in 108.50-111-50 range in the near-term.
"FY19 begins next week. Securities selling flows as investors capture gains at the start of the fiscal year are probably weighing on USDJPY upside. Whether Japanese investors will actively replace their foreign holdings right away remains to be seen. Japanese investors can only look to foreign bonds as yen rates fall.
The March BoJ Tankan survey will be released on April 1. Japanese corporate sentiment is important to watch as concerns build about China’s economy slowing," MUFG notes.