Moody’s: Japan’s weaker growth jeopardizes revitalization

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Headline on the wires


  • Japan’s weaker economic growth is credit negative

To the extent that the market pays much attention to Moody’s pronouncements, this is a Nikkei negative and a USd/JPY negative.

As a reminder – some Japanese data due out later at 2350GMT

Author: Eamonn Sheridan

Eamonn Sheridan worked with Bankers Trust Australia for 13 years as a Spot foreign exchange dealer, trading across all major currencies and all time zones. He rose to a Vice President position, running spot operations during the busy European time, leaving the bank just prior to it being sold to concentrate on running his own business in the ‘real world’! The markets, however, had him hooked – he continued to trade equities, CFDs and then on to futures, giving him broad experience across financial markets. He is now active in FX and equity index futures as well as writing for ForexLive™. Eamonn is a graduate of The University of Melbourne in Australia and lives in New South Wales.


All|Asia Pacific


Eamonn Sheridan


  1. Weaker growth = weaker yen or not ?

  2. damnnnnnn take a look at these positions and targets from Morgan Stanley lol

  3. I think we have to ask ourselves whether Abe and kuroda plan to revitalize Japan requires a weak yen…if it does then there’s no way they would just watch as yen triples in strength

  4. MS also said they’re looking to buy at 96.50 with a 101.00 target and a stop at 95.50.
    Rationale: higher US yields should increase the interest rate differential between the US and Japan and encourage further portfolio outflows from the latter. The potential for a corporate tax cut would likely increase earnings and equity prices, and therefore boost the Nikkei. The strong correlation between Japanese stocks and USD/JPY suggests further near term upside.

    And cable they’re looking to short at 1.5530 ‘if seen’ ;) with a stop at 1.56, targeting 1.48.
    Rationale: sterling remains one of the most vulnerable currencies in an environment of higher US yields. The UK’s basic balance position is the most negative across the G-10, suggesting capital flight is a risk if foreign returns increase.

  5. ” go big or go home ” is the theme at Morgan Stanley

  6. The unkind used to say of them
    Large M
    small organ

  7. Great…that means UJ is going to hit 95.5 soon and we won’t see 101 for a while. MS is a joke. They set a new world record for most failed trades in a row.

  8. I honestly don’t know of any hedge fund that’s consistently had more bad calls than Morgan Stanley. What good is a 10:1 risk reward ratio when your winrate is 0%?


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