US economic outperformance has run its course, sell USD/JPY - Morgan Stanley
Interesting note from Morgan Stanley
Morgan Stanley argues for selling USD/JPY at spot with the 109.20/30 resistance area offering a chance to put a stop at 109.40.
They argue that US fiscal expansion weakened US balance sheets but did not lastingly improve the growth potential of the US economy. Now they see banks laoding up their balance sheets with Treasuries rather than expanding lending.
"Weak US capex and US banks buying Treasuries support our view that the US' economic outperformance may have run its course," they write.