Core Viewpoint - Goldman Sachs strategists predict that the Japanese yen may rise to the 100 level against the US dollar within the next decade as Japan's monetary policy gradually normalizes, indicating a potential reversal of the long-term depreciation trend of the yen [1][3] Group 1: Economic Context - The report led by Kamakshya Trivedi suggests that the prediction is not as aggressive as it appears, considering the imminent exit from ultra-loose policies such as yield curve control [1] - Since the implementation of negative interest rates by the Bank of Japan in 2016, the yen has been in a structurally weak position, leading to capital outflows and supporting Japanese export companies while boosting domestic stock markets [1] Group 2: Historical Trends - Historical experience indicates that even when the yen is long-term misvalued, it tends to gradually return to fair value, as seen between 2020 and early 2021 when the yen strengthened due to rising global risk aversion and falling US Treasury yields before entering a depreciation phase again [3] - Despite Prime Minister Fumio Kishida's support for loose monetary policy and fiscal expansion plans, which are seen as short-term negative factors for the yen, there is increasing political opposition to inflation within Japan, suggesting that any return to "Abenomics" would be more moderate in intensity [3]