Goldman Sachs provides a growth of USD/JPY to 130.00

Forex strategists of Goldman Sachs noted that the surprising decision by the Japanese central bank to introduce negative interest reaffirms bearish prospects for the yen.

Analogous situation in October 2014 gives us a useful indication of the potential reaction of markets, complemented by Goldman Sachs. USD/JPY then rose by 2% as a direct effect, but the next month rose another 7%.

Weakened risk appetite support the Japanese currency, leading to increased volatility. Before the meeting of the central bank, dominated long positions in the yen, but now experts expect to focus on a different direction, in which they have undertaken monetary policies in the US and Japan.

Of course, China remains a key risk factor in the short term, emphasized by Goldman Sachs, but provide reports Celestial Empire to stabilize, which will lead to stability in risk sentiment.

Against this background, experts expect an increase of USD/JPY to 123.00 next week to 130.00 in the coming 12 months.