USD/JPY to climb to 117 according to Morgan Stanley.

Home / Morgan Stanley / USD/JPY to climb to 117 according to Morgan Stanley. FORECAST

Morgan Stanley expects bearish JPY in short term. “We think there is scope for USD/JPY to tactically rally up to 117 in the near term, driven by both sides of the cross. First, should US data improve as we expect, but the Fed remain dovish, this should put upward pressure on long end US yields. Meanwhile, JGBs currently yield record lows, while realized volatility is near record highs” written in the report.

According to the analysts, such dynamics will move capital from Japan to US as the new fiscal year approaches.

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