General analysis USDJPY for 11.03.2022

Current Dynamics

After slight growth in the middle of the week the macroeconomic news from Japan released in the morning resulted in USD/JPY quotes growth.
According to the US Bureau of Statistics data the number of vacancies rose by 11.263M in January, while experts predicted the growth by 10.925M. However, according to the data which was released the next day, the initial jobless claims amounted to 227K, 10K more than estimated by the Labor Department. Core CPI rose 0.5% in February, which was in line with expectations but year-on-year CPI rose 6.4% vs. 5.9%.

Meanwhile in Japan GDP data was released: Japanese economy grew by 4.6% on an annualized basis and by 1.1% in Q4 while experts expected 5.6% and 1.4% growth respectively. However, it's worth noting that corporate and private sector spending is up early in the year in Japan, with the corporate price index up 0.8% in February and 9.3% for the year, (0.6% and 8.7% according to experts' forecasts).
According to this morning's data from the Bank of Japan, the household spending index fell 1.2% in January and rose 6.9% year-over-year (while experts had forecast worse numbers of -3.0% and 3.6%). We can see inflationary pressures starting to mount on the Japanese Yen.
Simultaneously with the news on household spending the BSI business conditions index of Japanese major manufacturers came out and showed decline of 7.6 points while the growth of 8.2 had been expected. 

Support and resistance levels.

News, published by the Bank of Japan contributed to the growth of quotations above the level of 116.34, after the market reached the local highs and fixed above the Fibonacci level of 161.8. The current trend is upward. RSI has locked above the 70 level in the overbought zone. 

• Support levels: 114.40, 114,73, 115.10, 115.80, 116.34, 116.67
• Resistance levels: 117.20, 117.70, 118.05 

Trading scenarios

• Long positions can be opened from the level of 116.67 with a target of 117.20 and a stop loss of 116.34. Implementation period: 1-3 days
• Short positions can be opened below the level of 116.34 with the target of 115.80 and stop-loss 116.67. Implementation period: 1-3 days