Usdjpy Forecast Goldman Sachs

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Usdjpy Forecast Goldman Sachs

USDJPY Forecast From Goldman And Credit Agricole

Credit Agricole and Goldman Sachs have lowered their targets for the USD/JPY pair. According to Goldman Sachs, the target for USD/JPY is now 165.00 in the next 12 months. Earlier, the bank had set a target of 150 for the pair.

Goldman thinks USD/JPY will touch 158 in the next 3 months. The pair will drop further to 155 in the next 6 months. Over the next 12 months, the pair will drop further to 150.00.

USD/JPY Could Drop To 150 In 12 Months

The bank has also explained why it lowered the valuation for the USD/JPY. According to the bank, the JPY was undervalued for years due to the global backdrop and domestic politics

However, the BoJ has ditched its overly dovish policy. In a sense, we can call the BoJ dovishly hawkish now.

The rate hikes have also tackled the inflation problem. As a result, the JPY is now under less pressure than it was before. Goldman also added that intervention risk is yet another reason why they believe in JPY appreciation.

Credit Agricole has set a target of 156 for the USD/JPY pair in Q4 of 2026. For Q4 2027, Crdit Agricole has set a target of 150. This is similar to the forecast made by Goldman Sachs.

Another catalyst for the JPY is the Japanese government's pension investment fund. Analysts think an increase in the bond allocation could also support the JPY.

A quick look at the USD/JPY shows it has come a long way over the last few years. The pair has continued to move higher year after year.

However, investment banks now think it is about to change and USD/JPY will eventually move lower. However, investors should also do their own research rather than relying solely on such forecasts.

The banks also added that any further increase in oil prices could limit the Yen gains. In addition, the BoJ must not simply match the rate hikes from the Fed and should do more. Otherwise, any increased interest rate differential could also limit JPY gains.

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