FXStreet reports that FX Strategists at UOB Group said that the potential advance to 112.20 in USD/JPY appears somewhat deflated for the time being.

Next 1-3 weeks: “We have expected USD to strengthen since last Friday (24 Sep, spot at 110.30). As USD surged over the past week, we noted yesterday (30 Sep) that ‘further USD strength is not ruled out but deeply overbought conditions indicate that the pace of any advance is likely to be slower’. We did not anticipate the sharp pullback to a low of 111.22 during NY session. While our ‘strong support’ level at 111.10 is still intact, the rapid loss in momentum suggests that the next resistance at 112.20 may not come into the picture this time round. In order to rejuvenate the flagging momentum, USD has to move and stay above 111.85 within these 1 to 2 days or a break of 111.10 would not be surprising.”