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US recovery loses steam with bulls capped at 147.00
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The cautious market mood keeps the safe-haven Yen near recent highs.
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Hopes that the BoJ will exit its ultra-loose policy in 2024 are likely top support the Yen.
The US Dollar is licking its wounds near three-month lows at 146.25, as the recovery attempts seen earlier on Monday have failed to extend above 147.00.
The yen refuses to give way amid cautious markets
Price action is moving within a narrow range, with buyers protecting the 146.25/45 area as market sentiment is upset. The risk-on sentiment seen on Friday turned to caution after Fed Powell’s comments, as the market turned its focus to a string of key US data, which will further signal the Federal Reserve’s monetary policy.
Beyond that, markets are increasingly convinced that the BoJ will begin to exit its ultra-loose monetary policy, which is cushioning the yen’s negative efforts.
Technical indicators show the broader downtrend intact, with the 147.05 resistance level blocking the path to last week’s highs at 148.30 and 148.85. The supports are 146.50 and 145.95
