USD/JPY Dips Supported on Higher US Yields

Yen lost ground through Wednesday's session (-0.13%), as the USD saw broad based gains. USD/JPY remained well within recent ranges though, with dips to 144.10 supported, while we couldn't sustain moves above 144.70. The pair last tracked close to 144.55/60. Yen saw slight outperformance versus the rest of the G10 (except GBP), with modest gains against AUD and SEK.

• A firmer US yield backdrop helped broader USD sentiment, although yield gains were more prominent at the back end, 10yr back above 3.93% (+8bps). Almost all Federal Reserve policymakers agree further interest rate hikes will likely be needed this year, and some even wanted to raise them in June despite ultimately deciding unanimously to hold steady for the first time since March 2022, according to minutes from the central bank's late released Wednesday.
• Upside focus in USD/JPY remains on the end June high of 145.07, while 145.66 is the 1.50 proj of the Jan 16 - Mar 8 - Mar 24 price swing. Note, the trend condition remains the most overbought (as per the 14-day RSI) since mid-October. Key short-term support is at 142.09, the former bull channel top. A break would signal scope for a deeper correction.
• Locally, the data calendar has weekly investment flow figures today, along with June Tokyo office vacancies.