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Jakobsen: Why now's the time to short the dollar

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The dollar's peaked and now's the time to short it; that's according to Saxo Bank's Chief Investment Officer, Steen Jakobsen. EURUSD has fallen considerably in recent weeks after hitting a 52 week high of 1.40 in May. Steen points to US bond yields as backing up his view and believes those yields will fall more than their European counterparts this year.  He also says the market's now overexposed to the dollar and he's expecting significant weakness towards the end of 2014. 
He's urging investors to look beyond the next couple of weeks and all the "hype" surrounding the ECB and the Fed and focus on interest rate and inflation differentials. He points to Japan as a good example of when a currency rises when deflationary pressures persist in an economy.