TD Research summarizes its trading strategies for DXY, USD/JPY, and EUR/USD.
"We note that the Consensus Bullish Sentiment USD index sits at 75%, which dovetails with our positioning indicators. Technically, the DXY has failed to break the crucial 96 level in a handful of tries over the past few months. We like the risk/reward of selling near 95.
Also noteworthy is the spike in the 10y JGB yield and the steepening of the yield curve (2s10s). Perhaps it is a delayed reaction to the BoJ policy tweak, which is designed to steepen the curve. We continue to like fading USDJPY rallies ahead of the recent highs and like a break lower in the coming weeks. We also like buying EURUSD dips towards the figure at 1.16," TD advises.