While the USD is maintaining its larger bull trend against the EUR for the time being, a USD pullback is taking hold against the JPY. Into the fiscal year end in Japan, further corrective activity in USD/JPY is likely; however, thereafter, we note a bullish turn in seasonality at the start of April. This is in line with the ongoing bull trend in the US Dollar Index. In rates, the surge in JGB futures to all-time highs (on continuation charts) is also signalling bearish JPY potential, especially as in contrast, Treasuries are lacking meaningful traction in the short term
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Barclays