USDJPY - Long - Upside Potential

We still see USDJPY moving higher and expect it once again consolidate above support at 109.251 in the short term. This is due to us believing the currency pair has fallen largely on the back of USD weakness across the board and despite optimism a phase 1 deal will be formally signed between the US and China in the coming days. However, if stocks continue dropping from their slight pullback yesterday this could open further downside for the currency pair towards 108.