EUR/USD, EUR/JPY: Morgan Stanley sees EUR/USD making brief climb over 1.15

Morgan Stanley remain bearish on the EUR/USD in the medium term and is on the lookout for an opportunity to sell.

"We believe that the EUR/JPY should be sold at current levels given that we are above a 38.2% Fibonacci retracement of the first wave and the wave is almost complete. A stronger downward signal could be triggered by a move below the recent consolidation zone around 133.90. We would then place a stop at the 50% Fibo retracement at 137.90.

"The wavy structure also suggests that there could be momentum on the EUR/USD since wave 5 is incomplete. We suggest a rebound right above 1.15. There will be more bearish momentum when we fall below 1.12, the lowest point of the current channel." says Morgan Stanley.