Morgan Stanley sings against the yen bears, expects the yen to rise to 120 against the US dollar

Gold 10 data, June 26 news, the Japanese yen bulls have been basically in stealth mode recently, but Macquarie Group is an exception. Gareth Berry, forex and interest rate strategist at Macquarie in Singapore, said the yen could strengthen to around 120 against the dollar over the next 18 months or longer, which would mean a 33% surge from current levels. This expectation will largely depend on the Federal Reserve making a significant interest rate cut to boost demand in the event of a major panic in the US economy. ‘If the impact is global, it could prompt the Fed to make a big rate cut,’ Berry said. ‘Once the Fed starts making big rate cuts, the USD/JPY will plummet.’ As the interest rate differential between the US and Japan continues to widen, the most extreme expectation among yen bears is that 170 will become the next major target for USD/JPY.