Danske Research sees a scope for further upside in USD/JPY and EUR/CHF in the near-term.
"We think USD/JPY has further to go, as the US economy will catch-up to Asia as it opens up and outpaces Asia and particularly Japan in the vaccine race. This will continue to press for higher US yields and BoJ will remain reluctant to let JGB yields drift much higher with inflation so far off target," Danske notes.
"We still see a case for higher US real rates, especially now the Fed is turning more hawkish. We expect this will send EUR/CHF higher although we think most of the increases are now behind us. The key for the pair is if global macro becomes so good in Europe that markets start talking about ECB rate hikes," Danske adds.