Goldman Sachs Turns Bullish on the Yen: Forecasts Rise to 150 in the Next 12 Months, Supported by Capital Repatriation and BOJ Rate Hikes

Odaily News: Goldman Sachs Group expects the Japanese yen to strengthen to the 150 level over the next 12 months, marking a shift from its previous bearish stance. The firm believes that changes in Japan's domestic policy and potential capital repatriation will enhance the yen's upside prospects. Goldman Sachs strategist Karen Reichgott Fishman raised her 12-month USD/JPY forecast from 165 to 150 in a report, while also adjusting her 3-month and 6-month targets to 158 and 155, respectively.

She stated that the revised forecasts are mainly based on the Bank of Japan raising interest rates faster than previously expected, as well as the increased likelihood of Japanese domestic capital flowing back into Japanese assets. Fishman wrote: "Together, these changes increase the appeal of going long the yen, especially at a time when the market is beginning to worry about recession risks, as the yen can provide some protection." (Jinshi)