Morgan Stanley: Deal of the Week are purchases of USD/JPY

Forex strategists at Morgan Stanley advised investors this week to consider purchases of dollars against the yen.

"We recommend long positions in USD/JPY with target 117.00 and stop to limit the losses of 110.50. We expect strong economic data from the US, if our forecasts prove accurate, we will witness an increase in the yield of US bonds, which would stimulate the flow of capital." - comment the analysts.

Meanwhile, yields on Japanese government bonds are not attractive from a historical perspective. Therefore, with the beginning of the new fiscal year in Japan, the flow of capital from the country will rise - warn the experts.