Morgan Stanley: USD/JPY targets 105.80
Morgan Stanley holds a short position on USD/JPY from 109.00 yen and with a target of 105.80.
According to analysts at Morgan Staley, the recent conflicting messages from Japan could push JPY higher against the USD. The Bank of Japan has pointed that the weak currency is not hurting the economy and supports the recovery.
However, the government officials are now starting to take a different line: "Prime Minister Abe has pointed out that a weak yen is hurting small companies and households. Meanwhile, Chief Cabinet Secretary Suga has highlighted that exports have not been growing despite the weak yen," analysts explain.