FxWirePro: USD/JPY caught in narrow range, bias bearish

• USD/JPY  hovered near ten-month low on Friday as traders awaited economic data to predict how central bankers direct interest rates this year.

 • The Summary of Opinions from the BoJ’s latest meeting reaffirmed its commitment to further monetary tightening, though the timing of future rate hikes remains unclear.

 • The Bank of Japan hiked interest rates twice in last year but that did little to improve yen performance as the cautious pace frustrat investors.

 • Meanwhile,Finance Minister Satsuki Katayama said Japan is watching FX moves closely and is prepared to act against excessive, one-sided volatility.

• Ueda made an uncharacteristic speech earlier last month in which he clearly telegraphed a rate hike at this meeting.

• In the Dec. 2–9 survey, 90% of economists (63 out of 70) predicted the Bank of Japan would lift short-term rates to 0.75% from 0.50% at next week’s meeting.

• Immediate resistance is located at 157.95(SMA20), any close above will push the pair towards 158.20(Higher BB).

•  Support is seen at 156.05 (SMA 20) and break below could take the pair towards 154.72 (38.2%fib)

Recommendation: Good to sell  around 157.20 with stop loss of 158.50 and target price of 156.20