MUFG Research discusses USD/JPY outlook and sees a limited scope for USD/JPY upside around current levels. MUFG targets USD/JPY at 108, 107, 106, and 105 in Q1, Q2, Q3, and Q4.
"We recently saw some potential for upside risks over the short-term for USD/JPY but the window for that is unlikely to last much longer," MUFG notes.
"The Fed is signalling a more dovish stance which will limit the upside potential for USD/JPY. Japan’s current account surplus will remain a key support going forward," MUFG adds.