We could see another USD/JPY sell-off of roughly 3% – Goldman Sachs

Anil Panchal FXStreet

As markets brace for Wednesday’s Bank of Japan (BoJ) monetary policy meetings, multiple investment banks and analysts convey their forecasts for the USD/JPY pair that’s been lately gaining more attention, especially after the BoJ’s tweak to the Yield Curve Control (YCC).

Analysts at Goldman Sachs (GS) are from the same lot and anticipate the Yen pair to decline further by suggesting a 3.0% drop, or a fall to just below the 125.00 level. However, the GS also states that the bigger driver of the cross should be US rates rather than domestic monetary policy.

The GS also signals that their economists expect the BoJ to keep YCC in place with possible further tweaks to improve its sustainability. However, the increased risk of a complete exit means they see more limited room for USD/JPY upside.

It’s worth noting that majority of market estimates don’t suggest any major change to the BoJ’s monetary policy. However, hints for the exit from the ultra-easy money days will be closely observed for clear directions.

That said, the Yen pair began the week’s trading by dropping to the lowest levels since late May 2022 before bouncing off 127.21, mildly offered near 128.30 by the press time.

Also read: USD/JPY Price Analysis: Bulls on course for a 129.50 target

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD looks apathetic around 1.1770

EUR/USD comes under renewed pressure on Tuesday, deflating below the 1.1800 support and reversing two consecutive days of gains. The pair’s decline follows the persistent move higher in the US Dollar, as trade uncertainty dominates the sentiment ahead of President Trump’s SOTU speech.

GBP/USD regains 1.3500 and above

GBP/USD extends its advance for the third day in a row on Tuesday, this time retesting the area beyond the 1.3500 hurdle. Cable’s uptick comes despite decent gains in the Greenback and the dovish message from the BoE’s Bailey at the UK Parliament.

Gold appears offered around $5,150

Gold is giving back a good portion of the recent multi-day rally, receding to the $5,150 zone per troy ounce amid the decent bounce in the US Dollar and mixed US Treasuty yields. In the meantime, markets’ attention remain on upcoming comments from Fed speakers.

Crypto Today: Bitcoin, Ethereum, XRP come under renewed pressure amid ETF outflows, tariff uncertainty

Bitcoin, Ethereum and Ripple are trading under increasing selling pressure at the time of writing on Tuesday, as market participants navigate renewed tariff uncertainty. The Crypto King holds above $63,000, down 2% intraday from its $64,656 open.

The Citrini report: How a debatable AI narrative can shake Wall Street

That AI-related headline alone was enough to rattle investors.US stocks slid sharply on Monday after a widely circulated Citrini Research memo outlined a hypothetical “2028 Global Intelligence Crisis”, warning that rapid AI adoption could push US unemployment into double digits as early as by mid-2028.

XRP pressured by weak ETF flows and declining retail interest

Ripple (XRP) is edging lower, trading above its intraday low of $1.32 at the time of writing on Tuesday. The decline from its weekly opening of $1.39 reflects heightened volatility in the broader cryptocurrency market, accentuated by tariff-triggered uncertainty.