ING discusses USD/JPY technical outlook and hold the view that near-term setup could still suggest development of an important top around current levels.
"However, the daily chart also showed the completion of a large bottom formation above 110.70 in the past few days. This makes the current picture indecisive. A close below the underlying trend line around 110.40 is necessary to weaken the picture and to expect the next sell-off.
Until then, we cannot rule out the bullish scenario for a breakout above the horizontal resistance around 111.35," ING argues.