Strategists at the investment banking giant Goldman Sachs have raised USD/JPY’s six-month target to 103 from 106, citing the risk of a larger-than-expected stimulus lifting US treasury yields in a USD-positive manner. 

The bank, however, foresees USD/JPY at 100 in 12 months from now. 

The pair is currently trading at 105.57, representing a 0.21% gain on the day, having hit a low of 102.60 on Jan. 5. The US 10-year yield is seen at 1.24%, the highest level since March 2020.

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