💴🔺 Recommend USD/JPY Short, Target 120.0: Morgan Stanley Strategy

• The JPY tends to gain versus the USD when US real rates are falling - either because rates are falling in a benign scenario or a ‘hard landing’ scenario

• Short dollar-yen is an appropriate position while markets wait for further clarity on whether we will get a soft or hard landing

• Recommended entering short USD/JPY @130.4, target @120.0, stop loss @135.0

- Morgan Stanley Strategy