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Morgan Stanley Calls 2016 the Year of the Yen as BOJ on Hold

  • Top trades include buying yen versus pound, franc and won
  • Japan's currency will reach 115 versus dollar, bank forecasts
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Are U.S. Equities Losing Steam Heading Into 2016?

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The yen will outshine the dollar as next year’s star performer in the $5.3 trillion-a-day global currency market, according to Morgan Stanley.

In what it calls an "out-of-consensus" prediction, the bank said it expects Japan’s currency to strengthen to 115 against the greenback at the end of 2016. That contrasts with a median forecast for the yen to weaken 126 per dollar, according to analysts surveyed by Bloomberg.