{"id":1064,"date":"2022-12-22T14:38:44","date_gmt":"2022-12-22T14:38:44","guid":{"rendered":"https:\/\/tradersontrend.com\/?p=1064"},"modified":"2022-12-22T14:38:44","modified_gmt":"2022-12-22T14:38:44","slug":"goldman-sachs-removes-bullish-call-on-the-dollar-against-the-yen-as-investors-flee","status":"publish","type":"post","link":"https:\/\/tradersontrend.com\/h\/2022\/12\/22\/goldman-sachs-removes-bullish-call-on-the-dollar-against-the-yen-as-investors-flee\/","title":{"rendered":"Goldman Sachs Removes Bullish Call on the Dollar Against Yen"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"1064\" class=\"elementor elementor-1064\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-72dd1bd2 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"72dd1bd2\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-13c0dd0a\" data-id=\"13c0dd0a\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-561c02ab elementor-widget elementor-widget-text-editor\" data-id=\"561c02ab\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.21.0 - 26-05-2024 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p>The dollar\u2019s recent meltdown suffered at the hands of the Japanese Yen has forced some of its backers to rein in their bullish bets on concerns the Bank of Japan\u2019s hawkish pivot on monetary policy earlier this week could mark the start of a <a href=\"https:\/\/www.nasdaq.com\/glossary\/h\/hawkish\">hawkish regime<\/a> shift.<\/p><p>The 4% plunge in\u00a0<a href=\"https:\/\/www.google.com\/finance\/quote\/USD-JPY?hl=en\"><span class=\"aqPopupWrapper js-hover-me-wrapper\">USD\/JPY<\/span><\/a>\u00a0earlier this week claimed its first victim as Goldman Sachs said it was abandoning its long USD\/JPY trade recommendation and placing its forecasts under review.<\/p><p>&#8220;<em>We are closing our long USD\/JPY trade recommendation and place our forecasts under review while we reassess,<\/em>&#8221; Goldman Sachs said in a note.<\/p><p>The need to take a step back comes after the BoJ announced it would tweak its yield curve control program \u2013 designed to keep Japanese government bond yields capped at a defined target level.<\/p><p>Under the amended policy measure, the central bank will allow its 10-year Japanese government yields to rise as much as 50 basis points, or 0.5%, up from a previous cap of 0.25%. <br \/><br \/>The unexpected move from the BoJ \u2013 a central bank that has continued to lean dovish even as its peers&#8217; front-load rate hikes \u2013 has sparked debate on whether this marks the start of a hawkish regime shift or a one-off tweak.<\/p><p>This debate \u2013 the start of a hawkish regime versus a mere technical adjustment \u2013 will likely determine the yen\u2019s ability to inflict further damage on the greenback.<\/p><p><a href=\"https:\/\/www.reuters.com\/markets\/asia\/boj-governor-kurodas-comments-news-conference-2022-12-20\/\">BoJ governor Governor Haruhiko Kuroda<\/a> said the move was needed to correct distortions in the yield curve after global bond pressures pushed Japanese government bonds higher and shouldn\u2019t be viewed as the beginning of a hawkish pivot.<\/p><p>Goldman Sachs appears to agree, believing the BoJ\u2019s tweak represents a mere technical adjustment. <br \/><br \/>The BoJ\u2019s basic framework &#8211; to end deflation through uber-dovish policy &#8211; remains unchanged, according to the bank but fighting the market at a time when the traders are betting on the very real possibility that the wind of change beckons for the BoJ isn\u2019t something the bank is prepared to do, at least in the near term.<\/p><p>\u201c<em>[I]n the near term we are hesitant to engage in this view \u2026 because the market is likely to raise odds of a more material BoJ shift, which is a real possibility given there has also been a shift in BoJ communication recently,<\/em>\u201d Goldman Sachs said.<\/p><p>Still, the bank does appear to hold some optimism for a dollar-yen comeback in the coming months, arguing the markets \u201c<em>are over-pricing US recession odds and under-pricing the Fed cycle,<\/em>\u201d paving the way for a boost to Treasury yields.<\/p><p><em>For More Stocks And Investment Related News, Click <a href=\"https:\/\/tradersontrend.com\/\" target=\"_blank\" rel=\"noopener\" data-saferedirecturl=\"https:\/\/www.google.com\/url?q=https:\/\/tradersontrend.com\/&amp;source=gmail&amp;ust=1671792969166000&amp;usg=AOvVaw31SJlcWy61oVTlKdY1DKhc\">Here<\/a>.<\/em><\/p><p>\u00a0<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>The dollar\u2019s recent meltdown suffered at the hands of the Japanese Yen has forced some of its backers to rein in their bullish bets on concerns the Bank of Japan\u2019s hawkish pivot on monetary policy earlier this week could mark the start of a hawkish regime shift. The 4% plunge in\u00a0USD\/JPY\u00a0earlier this week claimed its&#8230;<\/p>\n","protected":false},"author":1,"featured_media":1980,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[93,195,625,657],"class_list":["post-1064","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-newsletter","tag-boj","tag-dollar","tag-usd-jpy","tag-yen"],"_links":{"self":[{"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/posts\/1064","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/comments?post=1064"}],"version-history":[{"count":0,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/posts\/1064\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/media\/1980"}],"wp:attachment":[{"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/media?parent=1064"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/categories?post=1064"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/tags?post=1064"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}