Danske Research discusses its tactical bias on EUR/USD and USD/JPY this week.
"EUR/USD continues to trade heavy and we still see further downside to spot. This week, there is little tier 1 economic data and hence focus will likely turn to Fed speeches, US fiscal policy and spill over from general risk sentiment. On a week like this, the most likely EUR/USD will remain in the recent range," Danske notes.
"USD/JPY seems to have re-anchored itself to US treasury yields and thus the cross range-traded last week between 113.5 and 114.5 before breaking below the range Friday afternoon. We expect high energy prices will continue to weigh on JPY along with pressure for higher US yields," Danske adds.