USD/JPY falls out of recent range, headed lower
Nov 27 (Reuters) -USD/JPY fell out of its recent 153.28-156.76 range in place since mid-November,trading down to 152.13on Wednesday. The prognosis is for further moves lowerthrough some key supports and maybe to 150.
The initial target for speculators seems to be the gradually ascending 200-day moving average at 152.00. A break below this level projectstests towards the lows of 151.30 onNov 6 and 151.04 on Oct 23.
A break below these levels and 151.00 will put a bull's eye on massive, December option expiries at the 150.00 strike. Massive expiries are noted at the 140.00 strike too in December, but these may be out of the market's range for now.
With U.S. yields soft again into a likely U.S. Federal Reserve 25-basis-pointrate cut and JGB yields chugging higher on an expected 25 bp Bank of Japanrate hike in December, any USD/JPY retracements higher will likely be thwarted.
JPY has also been the sporadicbeneficiary of recent flight-to-qualityflows, especially on the JPY crosses. Lower crude oil and commodity prices are also seen as a plus for import-dependent Japan.
Previous comments nL2N3MW01T, nL1N3MQ021, nL1N3ME031. For more click on FXBUZ
USD/JPY: https://tmsnrt.rs/4fXfxLs
Yield on JGB 2s: https://tmsnrt.rs/4fMuwbg
Haruya Ida is a Reuters market analyst. The views expressed are his own. Editing by Sonali Desai
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