USD/JPY: Goldman Sachs recommends buying the pair from now until end of year following the Fed meeting

In a note to clients today, Goldman Sachs is modifying its view of the consequences of the Fed meeting last night regarding the USD/JPY:

"The Fed has brought its rates back up for the first time since 2006, without qualifying this decision with a dovish message. This decision proved to be broadly in line with market expectations, with the consequence of a rising dollar against the G10 currencies, in particular.

The key point of the Fed's meeting took place during Yellen's press conference, as she didn't take advantage of a question about the loan market to send a dovish message, but instead highlighted the strength of the economy.

On the forex, the pair that benefited most from the Fed's decision was the USD/JPY as the pair continues to be - in our opinion - the best vehicle to take advantage of the USD's upward momentum by the end of the year given the expectations of further easing by the BoJ."