Morgan Stanley tipped EURJPY shorts for this week and they've just been filled
Morgan Stanley's weekly FX note (out late Thursday) touched on the BOJ and they see yen strength over the medium term;
"While USDJPY is set to remain sensitive to swings in Fed expectations, we see the JPY gaining support on the crosses over the medium term. Long JPY positions could prove a way to diversify from long USD."
This week their trade was to go short at 136.10 looking for 132.50 with a stop at 137.50. We've just traded up to 136.14 so they should be filled
The short EURJPY trade hasn't been a big success recently with Citi getting turfed out of one pretty quickly a couple of weeks ago and Morgan's themselves getting stopped out of a 9th Sep 134.70 short at 136.60 on the 11th
Technically the short side looks the most favourable with both the 55 and 100 dma's at 136.01 and 136.41 respectively, and the 55 & 100 wma's at 137 & 138. We're also are sitting in the middle of a short term downtrend
EURJPY daily chart
