Charles Evans of the Chicago Fed would not be surprised to see the Fed’s accomodative policy remain in place through 2011 which is slightly at odds with how the rest of the market is thinking. USD/JPY in particular has seen a number of longer term strategic longs starting to be built up as the market eyes diverging interest rates but with Japan at 0% (as good as) and if the Fed stays where it is, then these longs might be a bit premature. The USD might be under a bit of pressure in early Europe.