In our last update on currencies [see: Currencies, a Turning Point] we noted that DXY was in danger of breaking down as EURUSD was approaching strong overhead resistance. Since then, DXY’s rising purple channel dating back to 2010 did, in fact, break down… 
…at the same time that EURUSD reached our upside target at 1.19. 
USDJPY, which by now would normally have cratered, is stuck in a holding pattern in an attempt to hold NKD above its 200-DMA. 
With real bond yields negative and nominal yields barely does the US dollar have more downside? And, what are the implications for equities?
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