USD/JPY: the pair should continue to consolidate around 111 prior to moving upward in the medium term (Deutsche Bank)

The USD/JPY should consolidate around 111 before rising above 115 in the medium-term, according to Deutsche Bank.

"A number of political, economic and geopolitical factors that have prevented investors from building long positions on the USD/JPY are now behind us. The USD/JPY pair rose above 111, but this is only a rebound from the bottom of the short-term range forecasted at 108/114. We believe the pair will consolidate around current levels for the time being, in preparation of a rise above 115 in the medium term.

However, some factors that discouraged USD/JPY buyers remain in place, such as the delayed implementation of the US fiscal stimulus and the geopolitical risks in Asia."