USD/JPY has continued to trade above the 135 handle over the past few sessions. The pair could reach the 140 level on a break past 137, economists at OCBC Bank report.

Bias for USD/JPY is neutral to upward beyond the near-term

“While the yen may benefit from some safe-haven flows on and off as the risk sentiment swings, bias for USD/JPY is neutral to upward beyond the near-term.”

“Any break above the recent high of 137.00 may open up for a further upside toward the 140 level. Risk to this view is a removal of the YCC although this is not our near-term core scenario.”