USD/JPY made an attempt to move to the upside, temporarily rising above 114.50, but retreated back under 114. What’s next? ING tackles the pair from a different angle.

Here is their view, courtesy of eFXnews:

ING FX Strategy Research is mildly bullish on USD/JPY around current levels on the prospects of US tax reform and expects the pair to trade in a tight range capped through the 115 level for the week.

“Away from the US tax reform and generally positive US data, the focus this week is Trump’s trip to Asia. North Korea has been quiet recently, but could re-emerge were missile tests to be used to grab attention. Assuming that doesn’t happen, the USD/JPY story looks constructive.

In terms of data, the US calendar is very quiet (talk of Taylor getting appointed as Fed Vice Chair?) and there are just a few Fed speakers,” ING notes.