In view of FX Strategists at UOB Group, USD/JPY could attempt to stabilize above the 116.00 handle.
“USD had another volatile day by plunging below 114.00 (low of 113.73) before rebounding strongly. Downward momentum is waning and further sustained decline seems unlikely for now. From here, allow for a dip to 114.20 but 113.70 is expected to hold for a stronger recovery to 115.05/10”.
“USD plummeted below 114.00 to touch 113.73 but rebounded quickly and strongly. While the immediate downward pressure has eased somewhat, only a move above 116.00 would indicate that a short-term low is in place. In the meanwhile, another leg lower below 113.70/75 (next support at 113.10/15) is not ruled out but the odds for such a move does not appear to be high”.