Yen geared for a rally - Morgan Stanley

Analysts at Morgan Stanley are warning that the Japanese Yen could be gearing up to stage a rally across the broader markets.

Citing ongoing risk aversion from Brexit,  as well as a steady breakdown of global liquidity conditions dragging down risk assets. With sovereign bond yields also declining, which MS says will start to draw investors away from the USD 'carry' trade.

With global market risks continuing to rise, and an unattractive USD carry, the Yen could see a broad-market gainer as market flows back out of the US Dollar.