Intervention alone won't be enough to pin down USD/JPY, says Goldman Sachs

US Dollar To Yen FX Forecast: Goldman Sachs Sees Intervention Risk Capping USD/JPY Upside - Exchange Rates Org UK

The desk believes that intervention risks will limit the upside potential for USD/JPY, as highlighted in the recent commentary from Goldman Sachs. The firm suggests that the Japanese authorities are likely to step in if the yen weakens significantly, capping the pair's movement. This perspective aligns with the current market sentiment, which is cautious about aggressive dollar buying against the yen. Per the full note [source], Goldman Sachs emphasizes that the intervention risk is a critical factor in shaping the USD/JPY outlook.

Yen has room to drop further but intervention risks cap USD/JPY upside - Goldman Sachs - investingLive

Goldman Sachs posits that while the yen has potential for further depreciation, intervention risks may limit the upside for USD/JPY. As the market assesses potential intervention by the Bank of Japan, the dollar's ability to strengthen beyond current levels could face significant hurdles.

USD/JPY faces up against risk of another round of FX intervention - Credit Agricole

Goldman Sachs sees USD/JPY upside, 160+, as Japan fiscal bets lift intervention risk - investingLive

Goldman Sachs forecasts significant upside for USD/JPY, suggesting a target above 160 due to heightened intervention risks stemming from Japan's fiscal policies. This view challenges the current consensus, which sees more moderate appreciation for the pair over the next year.