Societe Generale Research discusses the current drivers for USD and JPY.

 

"At the moment, as the dollar tracks risk sentiment and the yen tracks Treasury yields, we are seeing the dollar at the top of March’s rankings, with the yen is second place despite yesterday’s move...But market volatility is a result of the speed and extent of Fed tightening, which has seen 2-year yields rise above both the last cyclical peak and the one before that," SocGen notes. 

 

"The volatility brings peak rates a lot closer. And while the dollar sometimes peaks before rates, sometimes after the downtrend has started, the downcycle in rates usually sends the dollar lower too," SocGen adds.