Analysts at Societe Generale believe that the US dollar is likely to derive support from the Treasury yields, which will, in turn, help keep the sentiment around the USD/JPY buoyed.

“The decline in USD/JPY may be limited due to higher Treasury yields and US stocks, although gains are expected to face a hurdle above the 109.00 level. Short-term positions in USD/JPY appears to be neutral at the moment. Geopolitical tensions in the Middle East and any comments by Trump on the dollar itself or trade could be risk factors. USD/JPY to trade within a range of 108.00 to 109.00 in the next week and may head towards either 107.50 or 109.50 - although saying that markets will generally struggle to find a clear direction.”