BTMU Research discusses USD/JPY outlook and adopts a tactical neutral bias, seeing the pair trading in 108.00-111.00 range in the near-term.
"JPY has hit a lull after Golden Week, ahead of FY17 earnings releases next week.
Next week’s release of US retail sales figures will be closely watched, but Japanese company earnings and management strategies will be even more so.
Japanese companies’ active investment strategies especially to the US could drive USDJPY even higher. However there is also strong structural JPY buying because of recurring profits.
We expect USDJPY to remain the bounds for now," BTMU argues.