Woofun AI reports that Goldman Sachs has revised its one-year USD/JPY forecast downward to 165, a significant shift from the previous 155 target. Strategist Fishman attributes this bearish outlook to the widening US-Japan interest rate gap, Japan's fiscal constraints, elevated US Treasury yields, and the Bank of Japan's cautious rate hike pace. The bank maintains that official intervention will yield only temporary results while fundamental weaknesses persist. Market data indicates hedge funds have increased bearish bets on the yen to record highs, with pricing suggesting a 72% likelihood of the pair reaching 165 by next June. Goldman Sachs also projects near-term targets of 162 in three months and 163 in six months, previously set at 160 and 158, while advocating for carry trades using the yen as funding currency.