MUFG Research discusses USD/JPY outlook and maintains a neutral bias, expecting the pair to trade in a 109-112 range in the near-term.
"USD/JPY has been trading in a fairly narrow range over the last week...There will be seasonal JPY-buying flows among Japanese players ahead of the fiscal year-end. However investors in particular have also been selling JPY and limiting FX hedging. The US-China trade talks have been delayed past the original timeline, so the sides will be deciding on a new schedule," MUFG notes.
"There may be changes in the political situation and fiscal policy ahead of the unified regional elections in Japan in April, but any impact on the markets will probably be limited," MUFG adds.