Goldman Sachs: The prerequisites for yen intervention have not yet been met.

According to Jin10 data on November 4, Goldman Sachs strategists stated that the usual prerequisites for triggering yen intervention have not yet been met, including the exchange rate rapidly falling to significantly weak levels, disconnection from fundamentals, and stronger verbal intervention. The yen “does not seem to be at particularly weak levels,” and its movement “is closely related to the repricing of fiscal risk premiums and recent market changes in expectations for the Bank of Japan's short-term policy,” strategist Karen Reichgott Fishman wrote in the report. Goldman Sachs believes that if the absence of U.S. economic data leaves the market unable to question the current positive growth expectations, and if the market refocuses on the possibility of early elections in Japan, the yen has room to weaken further. In the longer term, the bank still expects that lower hedging costs and a broader weakness of the dollar will gradually strengthen the yen, while any signs of deterioration in the U.S. labor market could trigger a faster and larger appreciation of the yen.