FX Strategists at UOB Group note that the USD/JPY is still expected to go up to the 109.75-level in the next weeks.

"24-hour view: USD traded between 109.32 and 109.60, much narrower than our expected sideway-trading range of 109.10/109.60. The price action offers not much clues and USD could continue to trade in a quiet manner. Expected range for today, 109.30/109.65.

Next 1-3 weeks: While we highlighted on Tuesday (26 Nov, spot at 108.90) that ‘USD is likely to trade sideways even though the uptick in momentum suggests it is likely to probe the top of the expected 108.50/109.50 range first’, the rapid pace of advance in USD that quickly moved above 109.50 was not exactly anticipated (overnight high of 109.60). Upward momentum has improved considerably and the focus is at the major mid to long-term resistance at 109.75. A clear break of 109.75 would greatly increase the prospect for USD to move above 110.00. All in, USD is expected to stay underpinned unless it moves below 108.80 (‘strong support’ level)."