USD/JPY eyes 110.00 in near-term – Morgan Stanley

In the view of analysts at Morgan Stanley, the Yen is likely to keep its downbeat momentum intact in the near-term, but the outlook for this year still remains bullish on the Japanese currency.

Key Quotes:

“Near-term Strategy: long USD/JPY, target 110.00 and stop loss 105.20.

A corrective advance looks attractive across a variety of different metrics that we analyze this week.

Further out, we maintain that 2018 will be the year of JPY strength.

But the next few weeks turning more risk-on and Japan exporting capital temporarily will set the rhythm for investors to return to the equity market dance floor.”