Via a Goldman Sachs note, says yen remains cheap, unlike many other safe havens

  • positive news out of the US-China meeting could weigh on yen in the near term
  • but its role as a portfolio hedge bodes will continue

Downside risks to GS' 12-month USD/JPY target (at 103)

  • proprietary models set 95 as fair value
  • bullish yen view supported by BOJ having limited monetary policy space to ease further
  • net outflows from Japan have shifted to "cross-border direct investment from portfolio flows, and outbound foreign direct investment could pull back on global trade uncertainty"

More:

  • trade disputes
  • unsettled global markets

may lead to a choppy USD