USDJPY falls below 150 on growing expectations for BOJ rate hike in March

USDJPY dips below 150 support and is on track for clear break lower after the pair was hanging above this level for more than two weeks.

Yen gained traction on signals may decide to start raising interest rates, with the most optimistic BOJ policymakers seeing chances for the first hike this month.

On the other hand, the US dollar came under pressure from weaker than expected US Fed ADP private sector payrolls, while prospects for the first Fed rate cut in June remain in play, despite remarks from Fed Chair Powell, who pointed to uncertain economic outlook and still not assured progress towards inflation 2% target.

The US central bank remains very cautious as too early rate cuts that would allow inflation to re-accelerate, but keeping too high interest rates for too long period would hurt economic growth, pointing to balanced approach to the monetary policy in coming months.

Daily close below 150 level (also 20DMA) will generate initial bearish signal, which will look for reinforcement on extension below 149.20 (Feb 29 spike low) and expose first Fibo support at 148.37 (23.6% of 140.25/150.88, reinforced by daily Kijun-sen).

Near-term bias is expected to remain with bears while the price stays below 150 level, while break here and falling 10DMA (150.29) would sideline bears.

Res: 150.00; 150.29; 150.88; 151.43
Sup: 149.20; 148.80; 148.37; 147.83