Goldman Sachs predicts that the Japanese yen will fall to 165 to 1 US dollar within one year, down from the forecast of 155. Strategist Fishman pointed out that the pressure of yen depreciation comes from Japan's fiscal pressure, high US bond yields, and slow interest rate hikes by the Bank of Japan. Hedge funds' bearish bets on the Japanese yen hit a new high since 2017 last month, and the market believes there is a 72% probability that the US dollar will rise to 165 against the Japanese yen in June next year. Goldman Sachs predicts that the USD/JPY exchange rate will be 162 in three months and 163 in six months, compared to the forecast of 160 and 158, and believes that the official intervention effect will be short-lived.
