MUFG Research discusses USD/JPY outlook and maintains a neutral bias, expecting the pair to stay in 110-112.50 range in the near-term.
"USD/JPY has stayed in a narrow range. GBP rallied after a no-deal Brexit was avoided, but this was neutral for USD/JPY. USD buying and JPY buying are neutrally balanced," MUFG notes.
"The fiscal yearend is now in the spotlight, and the JPY has lost its sense of direction since the flash-crash appreciation seen at the beginning of 2018. USD/JPY will probably become more vulnerable to decline involving Japanese companies that were late to hedge and late to buy JPY, as well as investors taking more neutral positions," MUFG adds.