Economists at Goldman Sachs outlined their view on the Japanese Yen, in the face of the incoming Bank of Japan (BoJ) Governor Kazuo Ueda and hawskish Federal Reserve expectations.  

Key quotes

“We have repeatedly said that US real rates should matter most.”

“The current market environment looks less favorable for significant dollar-yen downside, even in the case of a hawkish BOJ policy shift.”

“Expect the Bank of Japan March meeting will not bring anything substantive on policy change.”

“But this won't hinder speculation of some policy move from the BOJ after Kuroida departs in April and Ueda is ushered in as new governor. This will make the yen weakness limited.”