Given the risk-off mood and firmer US Treasury yields, analysts at the key banks reiterate their bullish bias for the USD/JPY prices.
Recently, Goldman Sachs (GS) reiterated their forecast for higher US rates to convey upside risks for the yen pair while saying, “We continue to expect USD/JPY to move higher in the near-term towards our 3-month forecast of 117.”GS also adds, “And may overshoot a bit if the Fed tightens more rapidly than currently priced.”
While rejecting the bearish bias, the investment bank mentioned, “That said, as the Yen weakens further, the odds of JPY-related policy guidance are likely to increase, and, therefore, we do not expect to see a sustained depreciation trend.”
It’s worth noting that the USD/JPY grinds around 115.50 ahead of the key preliminary Q4 GDP for Japan.
Read: USD/JPY is thrown around on interpretations of Ukraine's Feb 16 Russian invasion
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