Morgan Stanley recommends two long positions on the yen

The Morgan Stanley team, including Koichi Sugisaki and David Adams, is offering two long positions on the yen with revised targets.

First, they recommend selling USD/JPY at 146.40 with a target of 135, below the previous target of 145, and a stop at 151.

The second recommendation is to sell CHF/JPY at 171.30 with a target at 160 and a stop at 180.

Morgan Stanley predicts that if market prices for Federal Reserve bonds are around 2.75% by the end of next year, then the USD/JPY rate should fall to 135, which is about 7% below current levels.

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