MUFG Research discusses USD/JPY near-term outlook and adopts a tactical bearish bias, expecting the pair to move downward in a 111-108 range.
"A number of events are coming up this week. If the January FOMC meeting and US-China trade talks yield positive results, then this could stoke stock buying, supporting a rise in USD/JPY," MUFG notes.
"But events, including the Brexit negotiations, could end up being neutral for USD/JPY. JPY buying flows by Japanese companies are likely to pick up this time of year. We expect the ceiling for USD/JPY to be heavy," MUFG adds.