Analysts at Goldman Sachs offer a bullish outlook on USD/JPY, with a target set close to 140.00 again.

Key quotes

"After last week's rates rally, we see upside risks to USD/JPY on a tactical horizon, as our rates strategists think risks to real yields are still skewed to the upside, which should continue to exert more influence over the Yen than recession risks, and our models suggest USD/JPY could rise close to 140 again under our baseline scenario of 10y yields rising to 3.3% by the end of the year."

"Over the longer run, we still think there is a case for JPY appreciation resulting from a significant slowdown in the US that drives yields lower or a change in the BOJ's monetary policy, which is currently holding JPY at deeply undervalued levels on our models."