JPY - Fundamental Outlook for the Current Week by Morgan Stanley
Morgan Stanley sees the JPY as a bullish but it is may risky on related to the ranging market condition based on CNY depreciation:
"We believe JPY should be a relative outperformer going forward. In a risk-off environment, JPY should benefit from repatriation flows from its own domestic investors, as well as support as investors unwind their JPY funded risky positions. On top of this, domestic data in Japan continues to outperform, which should also offer support. The main risk to JPY in the near term, in our view, would be depreciation, following the moves seen in CNY over the past few weeks."
From the technical point of view - daily/weekly price will be fully turned to the primary bullish by breaking 125.85 resistance level from below to above. But for now, as we see from the charts - this is secondary correction in daily basis, and ranging market condition on weekly situation. I think that this is long-term forecasting made by Morgan Stanley, and USDJPY will be on ranging market condition for the current week.
