MUFG Research sees a limited scope for further JPY weakness (higher USD/JPY) from current level.
"limited JPUSD/JPY has risen back above the 111.00-level for the first time since early July as it moves to within touching distance of the year to date high of 111.66 from 2nd July. The next key resistance levels beyond are located at around the 112.00 and 114.00-levels," MUFG notes.
"Recent price action suggests that our view that there is only limited room for further yen weakness is likely to be tested. We continue to view the yen as already deeply undervalued which should help reduce scope for further weakness," MUFG adds.