According to Jinshi Data, ING said the yen may strengthen, but the pace will be more orderly after the recent rebound as positions look more balanced after cutting short bets on the yen.

Analysts at ING said USD/JPY will resume being driven by macro factors rather than positioning adjustments.

Slowing U.S. economic growth, interest rate cuts by the Federal Reserve and the prospect of further rate hikes by the Bank of Japan should boost the yen, they said.

ING expects USD/JPY to fall to 137.00 within 12 months from its current level around 147.60.