Late Friday Goldman Sachs wrote that.....>

DOLLAR-YEN: Late Friday Goldman Sachs wrote that "we expect the market

environment to become less Yen-positive in the months ahead as risk conditions

stabilize. While the US economy is slowing down, recession risks still appear

moderate and the shift from the Fed should continue to support markets on the

margin. At the same time, US real rates could decline somewhat further,

particularly at the back of the curve (which we find are most correlated with

USD/JPY). Therefore, we revised our 3, 6 & 12 month USD/JPY forecasts to

108/107/105 (from 112/110/108 previously). Although these forecasts imply close

to zero total returns for the Yen over the next year, we continue to think JPY

should be held as a portfolio hedge."