0719 GMT - The Japanese yen looks set to recover as the Bank of Japan shifts to a faster pace of interest-rate rises and the prospect of Japanese investors rotating back towards domestic assets rises, Goldman Sachs strategist Karen Reichgott Fishman says in a note. "Faster rate hikes have reduced the inflationary impact of expansionary fiscal policy, taking pressure off the currency.". While a shift in portfolio flows remains mostly speculation, the higher probability of it occurring is positive for the yen along with its cheap valuation, boosting its attractiveness as a portfolio hedge, she says. Goldman expects the dollar to reach 150 yen in 12 months, compared to its previous forecast of 165. The dollar falls 0.5% to 158.00 yen.