Barclays Research discusses USD/JPY outlook and adopts a cautious bias in the near-term.

"A tug-of-war between monetary policy divergence and FX intervention should keep USDJPY in the 140-146 range in the near term, in our view. While FX interventions have rarely turned medium-term market trends (outside of major joint operations), we believe it will be effective enough to squeeze speculations around these illiquid levels and cap USDJPY for now," Barclays notes.

"Hence, while the USD’s upward pressures from the Fed remain intact, we remain cautious in chasing any upside from these levels in USDJPY," Barclays adds.

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