We see USDJPY moving higher towards 112 in particular if it breaks resistance at 108.528 on it's second attempt after failing to break through this level in mid September. However, we believe that any further upside at this stage is very dependent on a positive outcome of the most recent US/China trade talks which should reach a conclusion today. If talks do not reach a favourable conclusion and stocks subsequently drop we see the currency pair dropping close to lows at around 105.