MUFG Research discusses USD/JPY outlook into Fed Warsh's speech at Jackson Hole on Friday.

"Jackson Hole remains important from a Fed perspective. If there is no strong steer by Warsh on a hike in September (which seems likely) we would likely see front-end rates soften a little in the US and coupled with strong expectations of a BoJ rate hike could provide some impetus for a further decline in USD/JPY. Buying momentum certainly looks to be fading once again," MUFG notes.

"Yen strength is evident in the non-dollar crosses today but if the Fed manages to remain on hold in September that yen strength should also become evident versus the US dollar as well," MUFG adds.