MUFG Research discusses USD/JPY tactical outlook and adopts a neutral bias, expecting the pair to trade in 105-107.50 range in the near-term.
"The lower bound for USD/JPY will likely be firmly supported by Japanese yen selling flows.
Looking ahead, we think the direction of monetary policy is unlikely to be any clearer even after Jackson Hole. Many of the central bankers will likely discuss how to understand the present uncertainty under the political pressure and US-China trade conflicts," MUFG notes.
"We expect USD/JPY to remain range bound," MUFG adds.