Goldman Sachs forecast USD/JPY to 155 if the BOJ maintains its dovish stance

From a Goldman Sachs note on the JPY Friday last week. In brief the analysts expect USD/JPY to 150 if the BOJ maintains its ultra-easy monetary policy. If the Bank backs away from this though that’s a risk to the forecast.

Goldman Sachs forecast 155 in 6 months for USD/JPY.

  • Revised from 135
  • “As long as the BOJ remains far from hiking rates and equities stay reasonably well supported, the yen should continue to trend weaker”
  • GS also citing improving US growth outlook also a factor

GS do note though:

  • “The main risk to this forecast of more yen weakness over the next six months is that higher inflation and currency depreciation proves more unpopular and catalyses more forceful responses in the form of currency intervention or an earlier hawkish shift from the BOJ, or both”

This article was written by Eamonn Sheridan at Source