Goldman Sachs cut its 12-month dollar-yen forecast to 150 from 165, reversing its bearish call from July. The bank also set three-month and six-month forecasts at 158 and 155, respectively. Strategist Karen Reichgott Fishman cited the Bank of Japan’s faster rate increases, including its 0.25 percentage-point move to 1.25% on the 18th, and the possibility that Japanese funds return to domestic assets. She said faster tightening could ease inflationary pressure from expansionary fiscal policy and support the yen, which could also help reduce portfolio risk if recession concerns intensify. Bank of America has set a year-end forecast of 149 yen, while hedge-fund bets on further yen strength are increasing. Goldman remains cautious in the near term and prefers positioning for yen strength against the euro rather than directly against the dollar.