USD/JPY: UOB's long term opinion, 125.85 was probably a major peak

Here are UOB's long-term expectations for the USD/JPY:

The evolution of prices following the June high of 125.85 suggests that the decline is part of an incomplete consolidation phase. The indicators have yet to fully erase the overbought conditions and, therefore, a deeper pull back towards 115 would not be a surprise. Overall, we expect that the dollar will maintain itself under 125.85 but the chances of a clear break below 115 seem slim.