ING FX Strategy Research thinks that USD/JPY looks to remain in consolidation mode ahead of Japan's snap election.

"Focus on the 22 Oct Japanese elections may narrow and a be a JPY factor to consider, though the latest polls suggest that Abe is heading for a big election win – which would be a major thumbs up to Abenomics.

Indeed, if the Japanese PM could secure more than 310 seats, he would have the two-thirds majority needed to sign-off on constitutional amendments," ING adds.

ING is neutral on USD/JPY in the very near-term and targets the pair at 115 in 1-month.

Source: ING Global Markets ResearchOriginal Article