According to UOB Group currency strategists Quek Ser Leang and Peter Chia, USD/JPY needs to continue to gain ground and break above 145.00 for additional gains.
24 hour view: “Our expectations for USD/JPY to ‘break 145.00’ yesterday failed to materialize as it pulled back from a high of 144.87 (low has been 143.89). The upside pressure has subsided and the current price move is likely part of a consolidation phase. In other words, USD/JPY is likely to trade sideways today, and is expected to trade between 143.70 and 144.70.”
Next 1-3 weeks: “Our update from two days ago (Sep 27, USD/JPY at 144.30) still stands. As we have highlighted, the bullish momentum is starting to build, but USD/JPY has to close above 145.00 before it is sustained advance likely. The odds of USD/JPY closing above 145.00 are not great, but would remain intact as long as it does not break 143.40 (“strong support” level was at 142.80 yesterday).”
Source: Fx Street