USD/JPY Holds Near 162.80 High as Goldman Lifts Forecast to 165

USD/JPY is consolidating near its fresh 40-year high of 162.80 after breaking above 162 in late June, driven by persistent U.S.-Japan rate divergence and resilient U.S. data. The Bank of Japan’s June 16 hike to 1.00% failed to stem yen selling, while U.S. 10-year yields near 4.4% versus Japan’s 2.6% continued to support the dollar. Goldman Sachs revised its one-year target higher to 165, citing limited lasting impact from intervention and heavy short-yen positioning, while Citi still projects a year-end pullback below 155 but sees upside to 163 if the Topix index climbs to 4,500. Analysts increasingly eye 170-180 absent aggressive Ministry of Finance action.