FxWirePro: USD/JPY dips below lower range, bearish bias increases

 • USD/JPY slipped lower on Friday as yen firmed  growing BoJ rate-hike bets overshadowed the weak household spending data..

• Japanese household spending unexpectedly fell at the fastest pace in nearly two years in October, government data showed Friday, raising concerns about the economic outlook as the Bank of Japan prepares for a possible rate hike as early as this month.

• On a seasonally adjusted, month-on-month basis, household spending fell 3.5%, sharply missing expectations for a 0.7% increase, the data showed.

•The indicator will be one of the factors the Bank of Japan evaluates when deciding whether to raise rates in December or wait until next year.

• On Monday, Kazuo Ueda said the Bank of Japan would weigh the “pros and cons” of a rate hike at its next policy meeting, signaling a strong likelihood of a move to 0.75% later this month.

• Immediate resistance is located at 155.60(38.2%fib), any close above will push the pair towards 156.000 (Psychological level).

•  Support is seen at 153.63 (50%fib) and break below could take the pair towards 153.18 (SMA 20)

Recommendation: Good to sell  around 154.60 with stop loss of 155.50 and target price of 153.90