ING FX Strategy is bullish on USD/JPY in the near-term, sees the pair trading in 113.50-114.50 for the remainder of the week.
"Week-end Japanese elections saw Abe's LDP party performing exceptionally well and securing the two-thirds super-majority in the lower house. This confirms a continuity of Abe's policies. Thus the BoJ remains last in the queue to normalize monetary policy, keeping the JPY soft.
On the dollar side of the equation, our above consensus call for US 3Q17 GDP (Friday) and the likely rise in the core yields on the back of the ECB QE tapering announcement suggest higher USD/JPY this week. 114.50 is significant resistance and looks likely to be pressed.