General analysis USDJPY for 31.03.2022

Current Dynamics

Japan's unemployment rate decreased to 2.7%.The Japanese government plans to revise its legislation on foreign currencies and introduce new duties on products from Russia.
The Chief Cabinet Secretary Hirokazu Matsuno said the Japanese government plans to review its legislation and make changes to the law on foreign exchange and foreign trade at the current session of Parliament. Particularly, it is planned to oblige cryptocurrency exchanges to find out information about customers and recipients of transactions in advance. This change in the law is aimed to limit the possibility of transferring cryptocurrencies by individuals and legal entities that have fallen under sanctions. At the same time, Tokyo plans to increase customs duties on certain products and raw materials from Russia. However, the Japanese authorities do not intend to leave the Sakhalin-2 oil and gas project, as they are interested in continuing to purchase energy resources as part of it. It is worth noting that the Ministry of Foreign Affairs of Japan calls the Southern Kuril Islands belonging to Russia "illegally occupied.
Along with this, the Ministry of Economy, Trade and Industry of Japan has made a list of imports from Russia of goods that are difficult to replace. The list includes: oil, coal, liquefied natural gas, palladium, ferroalloys for steel and stainless steel.
GDP in the U.S. grew 6.9% in the 4th quarter while experts forecasted growth of 7.1%. At the same time the number of new job openings in the US labor market in February amounted to 11.266M which is better than experts' forecast by 0.266M.
The released data on the Japanese labor market turned out to be better than the experts' forecasts as the unemployment rate in February went down to 2.7% from 2.8%, and the ratio of vacancies to job applicants in February was 1.21. At the same time the industrial production in Japan grew by 0.1% in February.
Today at 15:30 (GMT+2) the number of initial jobless claims is expected to be released. Tomorrow at 2:50 (GMT+2), Japan's big producer sentiment index and Tankan non-manufacturing company sentiment index for the first quarter will be released.

Support and resistance levels.

USD/JPY trades in the corridor between 61.8 and 50.0 Fibonacci levels. The instrument is trading in a wide sideways corridor. The RSI oscillator is down below the 50 level.

• Support levels: 121.40, 120.50, 119.45, 117.70
• Resistance levels: 125.10, 123.35, 122.25

Trading scenarios

• Long positions can be opened from the level of 121.40 with a target of 122.25 and a stop loss of 120.50 Deadline: 1-3 days
• Short positions may be opened from below the level of 120.50 with a target of 119.45 and stop-loss 124.40: 1-3 days