Goldman Sachs now expects the yen to strengthen to ¥150 per $1 over the next 12
months, reversing a prior bearish view that targeted ¥165. It raised 3-month and
6-month targets to ¥158 and ¥155. The revision reflects faster-than-expected BOJ
rate hikes and a higher likelihood of domestic capital repatriation to Japanese
assets. Goldman strategist Karen Leischgott Fishman wrote: "These developments
jointly increase the attractiveness of long yen, especially if markets begin to
worry about recession risk, as the yen can provide some protection."
