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The Dollar remains moderately bid, ready to test resistance at 147.50.
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Dovish comments from BoJ’s Himino are weighing on the Yen.
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The US ADP later today is likely to determine USD’s near-term path.
The US Dollar keeps a mild bid tone on the Early European trading session, with the pair trading within a narrow range below the 147.45 resistance area and bears contained above 147.00 so far.
The Dollar ticks up on higher US yields and a dovish BoJ
A mild pick-up in US Treasury yields and some equivocal comments from BoJ Deputy Governor Himino, cooling expectations of an hawkish turn in the bank’s monetary policy, added to bearish pressure on the yen.
The US dollar, however, is facing its own weakness. US JOLTs data on Tuesday revealed that the impact of higher rates is starting to ripple through the labor market, fueling speculation that the Fed could start cutting rates as early as 2024.
If ADP later today confirms this theory, we will see more USD selling later today.
The technical picture, however, is showing signs of a potential rebound. The four-hour chart shows the pair testing the top of a descending wedge pattern below 147.45, with a bullish divergence in the RSI raising hopes for buyers.
Resistances are 147.50 and 148.50 Supports at 146.30 and 146.00.
