MS have put out a trade of the week to sell...>

FOREX: MS have put out a trade of the week to sell AUDJPY at market with a

target of Y79.00 and stop at Y83.05. 

- MS add, AUDJPY has rallied in the past few weeks on the back of the risk

rebound, and is back near levels where we think shorts offer good risk/reward.

The main focus this week is on US CPI, where the outcome is likely to point in

favour of a stronger JPY. Should inflation surprise on the upside, indicating

rising inflationary pressure and pushing bond yields up, risk is likely to come

under selling pressure which should weaken AUDJPY. On the contrary, a downside

surprise in inflation should push US bond yields lower, which should weaken

AUDJPY too as the JPY is more sensitive to US yields. We like AUDJPY shorts

strategically too as tightening global liquidity does not bode well for risk

appetite in the medium term. The main risk to this trade is a strong rally in

risk appetite.