Why Morgan Stanley likes USD/JPY shorts ahead of G20
Morgan Stanley expects a bearish turn in sentiment
I love a trade idea that can be crystallized in a few sentences. Strategists at Morgan Stanley succinctly summarize why they believe in selling USD/JPY:
The risk rally seems to be running out of steam, and there appears to be little room for further upside. Media reports suggest that both the US and China have done limited preparatory work for the upcoming G20 leaders meeting on June 28-29, as the trade negotiating teams on both sides have not met since talks ended at an impasse on May 10. This suggests a reduced likelihood of a trade resolution, and we continue to favour USDJPY shorts accordingly.They also note that the technical picture for EUR/USD is positive and favor USD/NOK shorts.