BUZZ-COMMENT-FX traders snap up USD/JPY ahead of BOJ's rate decision

Dec 13 (Reuters) - The U.S. dollar looks set for a bigger recovery against the Japanese yen, as next week's Bank of Japan rate decision looms large.

The BOJ will hold interest rates at 0.25% at its December policy meeting as it assesses overseas risks and next year's wage outlook, a majority of economists said in a Reuters poll, in a shift from a survey last month.

In the previous Reuters poll, a slim majority had expected the central bank to raise rates by the end of the year. Regardless of this timing, the huge gap between the Federal Reserve and BOJ keeps USD/JPY's overall bias on the upside.

USD/JPY rose on Friday and has climbed well above the 152.71 Fibo level, a 50% retrace of the 156.76 to 148.65 (November to December) drop. If there is a daily close above the 152.71 Fibo, that would increase the odds of a bigger extension higher to probe the 154.85 Fibo: 76.4% retrace of the same 156.76-148.65 $(EBS)$ fall.

For more click on

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Daily Chart:

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

(Martin Miller is a Reuters market analyst. The views expressed are his own)

((martin.miller@thomsonreuters.com))