• USD/JPY drops most in over 3 wks as US stagflation fear upends market

• Settles near bottom of 149.87-151.22 range on EBS

• Trsy yields, shares sink after above est. core PCE, U Michigan data

• Fed Daly said flat progress on inflation hurts rate cut outlook

• USD/JPY drop neutralized bulls after series of higher lows is broken

• Vols nudge higher as bearish USD bets grow

• Resist: 151.25-30 upper Bollinger and March high; 151.67 200-DMA

• Supp: 149.90 9-day EMA; 149.70 conversion line; 148.92 base line

• Crosses lower as risk mood sours, commodities retreat
yen

(Robert Fullem is a Reuters market analyst. The views expressed are his own.)