As the dollar continues to lose strength from weakening sentiment, political blunders, reduction of Quantitative Easing, and lately, a war of words, we are painting the picture of how the DXY and USD/JPY can crash back to a decade low. This will be fun to trade and watch as volatility is returning the market.
Note: Reduction of QE through interest rate hikes is usually bullish for DXY. However, with the impact of higher interest rates on the consumer (mortgages, loans, credit card debt, etc) I theorize that the negative impact of default is greater than bond yields. Just a thought. Please feel free to correct me in the comment section :)