Archive · 21 Sep 2026
Goldman Says Yen Has Limited Room to Strengthen
Goldman analysts think the yen may not rise much more soon.
They prefer comparing the yen with the euro rather than directly betting on the dollar and yen.
Japanese investors own many investments outside Japan.
Much of this foreign investment is not protected against currency changes.
Investors could move some money back into Japanese assets.
Goldman says such a move would probably happen slowly.
Because the shift may take time, the yen may not strengthen sharply.
The article does not give a specific forecast for the yen’s exchange rate.
Goldman analysts said the yen may have limited room to strengthen further.
They prefer holding the yen against the euro in the near term.
They do not favor an outright dollar-yen position at present.
Japanese investors hold foreign assets that are largely unhedged.
Any meaningful shift back into domestic assets would likely happen slowly.
- Who
- Goldman analysts and Japanese investors.
- What
- Goldman assessed the yen’s potential for further strengthening and expressed a preference for yen exposure against the euro.
- When
- In the near term; no specific date is provided.
- Where
- Japan and international foreign-exchange markets.
- Why
- Because any reallocation by Japanese investors from largely unhedged foreign assets into domestic assets would likely be a slow process.
- Analyst
- Goldman analysts
- Currency view
- The yen may have limited room to strengthen.
- Preferred position
- Long yen versus the euro in the near term.
- Less-preferred position
- An outright dollar-yen trade.
- Japanese investors’ holdings
- Foreign assets are largely unhedged.
- Expected reallocation pace
- Any meaningful shift toward domestic assets would be slower-moving.