MUFG Research discusses USD/JPY outlook and sees a scope for further gains in the near-term.
"The BoJ’s contrasting stance with other major central banks leaves JPY vulnerable to further weakness in the near-term at least while the sell-off in global equity markets has paused for now. It has been notable that renewed yen selling pressure in recent weeks has also coincided with a relief rally for global equity markets," MUFG notes.
"Yen weakness is likely to accelerate further if USD/JPY breaks above 135.15. BoJ Governor Kuroda is not convinced though that there is much further room for the USD/JPY to continue marching higher unless the Fed to delivers faster and more rate hikes than currently planned," MUFG adds.