Core Viewpoint - Morgan Stanley predicts that if the Federal Reserve continues to cut interest rates, the Japanese yen is expected to appreciate by 10% against the US dollar in the coming months [1] Summary by Categories Currency Forecast - Morgan Stanley forecasts that the USD/JPY exchange rate will reach 140 by the first quarter of 2026 [1]

Core Viewpoint - Morgan Stanley strategists suggest that if signs of an economic slowdown in the U.S. become more apparent and the Federal Reserve continues to cut interest rates, the Japanese yen is expected to appreciate by approximately 10% against the U.S. dollar in the coming months [1] Summary by Relevant Sections - Current Exchange Rate Analysis - The current USD/JPY exchange rate is seen as deviating from its fair value, with expectations that a return to fair value could occur as U.S. Treasury yields decline [1] - Future Projections - Morgan Stanley forecasts that the USD/JPY exchange rate will drop to around 140 in the first quarter of next year, before rebounding to approximately 147 by the end of the year [1]