EUR/USD and USD/JPY (Goldman Sachs): We are highly bearish on Yen and are targeting 1.05 on EUR/USD within 1 year

Goldamn Sach remains bullish on the dollar:

"If we step back, we remain bullish on the dollar as the 3% increase in US policy rates by 2019 are expected to boost the dollar by 15%. We are bearish on the yen since we believe that the BoJ can only evolve in one direction in order to achieve its inflation target: To surprise the markets by being dovish.

We believe that the USD/JPY may rise in the short term. We expect 115, 120 and 125 within the next 3, 6 and 12 months, respectively.

We remain bearish on the euro and have predicted that the cross will fall to 0.90 within 3 years. But as the ECB has disappointed recently, we are raising this target to 1.05 within 12 months," says Goldman Sachs.