BTMU Research discusses USD/JPY outlook and adopts a neutral bias in the near-term, expecting the pair topside to be limited around 110.50 next week.
"During this time, the USDJPY floor has once again proved firm. If momentum builds toward a US-North Korean summit, USDJPY could rise.
However a wait-and-see mood seems most likely next week ahead of the planned meeting. President Trump’s foreign policy is back-to-back surprises. While there could be strong relative volatility, the JPY is unlikely to rally further. Then central banks in Japan, the US, and Europe will be meeting next month, and investor flows are unlikely to boost USDJPY.
As such, we expect USDJPY to remain within range," BTMU argues.