• USD/JPY drifts lower on Thursday as yen firmed as traders speculated on the possibility of the Bank of Japan raising interest rates later this month..
• Expectations have been rising that the BOJ will raise rates at its Dec. 18-19 meeting, fueled by recent comments from Governor Kazuo Ueda.
• USD/JPY has seen a 150.84 -149.72 range on Thursday. Scope is growing for much bigger drop towards 148.50 level.
• Technical signals are bearish as RSI is heading down at 49, daily momentum studies 5, 9 and 11 SMAs are trending down.
• Immediate resistance is located at 150.84 (50%fib), any close above will push the pair towards 152.48 (61.8%fib).
• Support is seen at 149.63 (23.6%fib) and break below could take the pair towards 148.74(Lower BB).
Recommendation: Good to sell around 150.30, with stop loss of 152.00 and target price of 148.50
