Barclays Research discusses USD/JPY outlook and sees a scope for dip buying which should keep the pair support in the near-term.
"The lack of major negative surprise from the Trump-Abe summit last week helped boost USDJPY amid ongoing risk recovery. Geopolitical and trade-related headlines should continue to dictate USDJPY dynamics, particularly with the upcoming North-South Korea Summit on Friday. Barring negative headlines, USDJPY is likely to remain supported in the near term with ongoing risk recovery," Barclays argues.
In addition, Barclays investor survey results indicate some scope for dip-buying in USD/JPY by investors although Barclays thinks that they are unlikely to chase the pair higher for longer.