Bank of America Global Research summarizes its current bias on JPY and GBP.

"We would sell USDJPY rallies, as we believe the BoJ unconventional policies are not sustainable, and our inflation forecast in Japan for 2023 is well above the market consensus—3% vs. 1.9%," BofA notes.

"We see more upside potential for GBP in the short term, on improving chances for a compromise with the EU on the outstanding Brexit issues, particularly those related to the Northern Ireland protocol. However, we remain concerned about the GBP outlook beyond such a deal, as the UK is already in the stagflation scenario that we see as risk for the rest of the world later this year," BofA adds.

For bank trade ideas, check out eFX Plus. For a limited time, get a 7 day free trial, basic for $79 per month and premium at $109 per month. Get it here.