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Dollar recovery fails at 147.45 and keeps bears in charge.
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Speculation about Fed cuts in March is limiting USD’s upside attempts.
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Hopes of some BoJ monetary policy normalisation support the Yen.
The US Dollar’s recovery from Monday’s lows met resistance at 147.45, and the pair has been trading on a moderate bearish tone on Tuesday. Investor’s cautious mood ahead of a slew of key US employment figures has cushioned the Japanese Yen’s reversal.
Fed rate cuts hopes are weighing on the US Dollar
increasing speculation that the Fed is done with hikes and that the US central bank will start trimming rates in March is weighing on the US Dollar.
In contrast, the Bank of Japan is expected to exit its ultra-loose monetary policy in the coming months. This combined with risk-off market sentiment is fueling losses in the safe-haven Japanese yen.
On the calendar, today’s US Services ISM and Jolt openings will underpin Wednesday’s ADP and Friday’s nonfarm payrolls, the main event of the week.
From a technical perspective, the pair trades in a falling wedge with a bearish trend from the four 4-hour mid-November highs. Price action remains below the key SMA and RSI has dipped below its median line suggesting further declines.
The next supports are 146.30 and 146.00. Resistances re the mentioned 147.45 and 148.50, the 38.2% retracement of the November – December decline.
