MUFG Research discusses USD/JPY tactical outlook and expects the pair to trade downward in 109-106 range in the near-term.
"USD/JPY has been stuck in a narrow range, and next week is also unlikely to feature any significant triggers. A number of key US indicators are slated for release, but for now policy stance is being watched more closely than indicators. In Japan, the September Tankan release on October 1 will be watched, especially for any signs that could lead to further easing," MUFG notes.
"We will be watching not only the September Tankan, but also the BoJ branch managers’ meeting and comments by both Governor Kuroda as well as other Monetary Policy Board members after that," MUFG adds.