Goldman Sachs strategist Kamakshya Trivedi's team said in a research report that as the market lowered expectations for the Bank of Japan's interest rate hike, there is limited room for yen appreciation. The recent strengthening of the yen stemmed from the market betting that the Bank of Japan would see a more drastic policy shift. However, there were differences of opinion among the nominating members of the central bank's board of directors, and the market began to doubt whether the yen could receive continued support. Bank of Japan Governor Ueda Kazuo sent a signal that the October rate hike threshold was high, lowering the market's expectations for a short-term tightening of monetary policy. The strategist warns that the yen may weaken further if the market shifts to a more dovish pricing of the Bank of Japan's interest rate hike. Affected by factors such as continued pressure on global interest rates and the slow reallocation process of Japanese investors in local assets, the bank recommends going long for yen against the euro rather than going long for yen against the US dollar.

Goldman Sachs strategist Kamakshya Trivedi's team said in a research report that as the market lowered expectations for the Bank of Japan's interest rate hike, there is limited room for yen appreciation. The recent strengthening of the yen stemmed from the market betting that the Bank of Japan would see a more drastic policy shift. However, there were differences of opinion among the nominating members of the central bank board of directors, and the market began to doubt whether the yen could receive continued support. Bank of Japan Governor Ueda Kazuo sent a signal that the October rate hike threshold was high, lowering the market's expectations for a short-term tightening of monetary policy. The strategist warns that the yen may weaken further if the market shifts to a more dovish pricing of the Bank of Japan's interest rate hike. Affected by factors such as continued pressure on global interest rates and the slow reallocation process of Japanese investors in local assets, the bank recommends going long for yen against the euro rather than going long for yen against the US dollar.