Morgan Stanley looks to sell USD/JPY on moves towards 80.40, the 50% retracement level of last year's April-to-October downtrend. MS is skeptical that the latest BOJ action is enough "to meaningfully turn the trend in JPY." The bank notes domestic investors have little incentive to lift hedged positions as local yields remain at rock-bottom levels while foreign assets, especially euro-zone ones, are likely to be repatriated while uncertainty lingers. USD/JPY at 79.7620.
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