USDJPY daily chart

MUFG Research expects USD/JPY to continue rising higher in what's been the best trend trade in FX in years.

They continue to like a prior recommendation of buying USD/JPY at 140.00 with a target of 146.00 (last week's high was 144.99) and a stop at 136.50.

"We are maintaining a long USD/JPY trade idea although acknowledge that the balance of risks has become less favourable in recent days," they write.

"We are not yet convinced that Japanese policymakers will back up words with action so are maintaining our long USD/JPY trade idea, but acknowledge that the balance of risks is no longer as favourable," MUFG adds.

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