Futures are again under pressure as the 10Y inches above 4% due to continuing inflation concerns.

The currency picture, however, suggests a change in the market’s fortunes.

continued for members…

Note that the rising wedge bottom is coming into view without much of a downturn. The currency picture we suggested yesterday is halfway in place: the USDJPY has pushed above its backtest target in a sign that the BoJ is happy to devalue the yen even more in order to boost stocks.

Meanwhile, EURUSD has reached its TL of support. Since the euro is a larger component of DXY, this has the potential to reverse DXY’s ascent prior to reaching the channel top target we’ve had in mind.  It would also be bullish for stocks.

continuing…