USD/JPY: Morgan Stanley says buying pair is likely best trade of this week, targeting 117

In a note published today, Morgan Stanley recommends buying the USD/JPY as it's the best trade of the week:

"We recommend buying the USD/JPY with a target at 117 and a stop at 110.50. In fact, we expect US rates to rise, which should attract foreign capital.

In Japan, JGB rates are historically low, suggesting that Japan's outflows will increase, especially towards the USA."

For the record, Morgan Stanley last week placed a buy limit order on the USD/JPY at 112.20, with a target at 117 and a stop at 110.50.