On Thursday, the USD/JPY pair is holding the lower ground around 113.50. Economists at OCBC Bank expect USD/JPY to remove the 114.00 hurdle and rally towards 115.50.

USD/JPY still trapped within the 112.50 and 114.00 range

“The USD/JPY was dragged in different directions by the improvement in risk sentiment and broad USD selling. The net impact is the pair still being trapped within the 112.50 and 114.00 range.”

“Bias is for the upside to be eventually breached, leaving a run towards the previous high near 115.50.”