USD/JPY: Range Lows Intact But A Break Of 107 Could Trigger Broad Position Squeeze - ING

ING Research discusses USD/JPY outlook and notes that the pair looks to be exposed on the downside this week, largely stemming from the high risk for the weak USD theme gaining further legs.
"For the USD/JPY, this week is about Trump’s 'America First' policy and potentially additional speculation on the future BoJ stance rather than any domestic Japanese data (such as Dec IP on Tue). 
Range lows are seen in the 107.30/108.00 area, which we roughly expect to stay intact. Any move under 107.00 could prompt broader position adjustment given a speculative market short JPY," ING argues.