Morgan Stanley said investors are ignoring the downside risk of the US Dollar against the Japanese Yen.

Morgan Stanley stated that the market has underestimated the risk of the US dollar falling against the Japanese yen. The bank recommends buying options before US employment data, potential US government shutdown, and the election of the leader of Japan's Liberal Democratic Party. A report by strategist Koichi Sugisaki said, "Despite the many risk events in the US and Japan, the volatility of the dollar/yen pair does not seem to have priced them in; we believe that one can take advantage of cheap volatility to position for a decline in the dollar/yen." They suggest buying a one-month put option on the dollar/yen with a strike price of 145.00.