The USD strengthen after better-than-expected US initial jobless claims and an increase in Services PMI, discarding at the same time disappointing continuing jobless claims.
Yesterday, Japan released its National Consumer Price Index in February that fell from 2.4% to 2.2% and unemployment rate also fell from 3.6% to 3.5% showing improvement in the labour market.
Today on the economic calendar we have from the US we will have the Gross Domestic Product Annualized (GDP) in 4th quarter that is expected to rise from 2.2% to 2.4%.
On yesterday session the USDJPY initially fell during the start of the day but bounce from 118.32 support zone closing near the open of the day. The pair shows a possible phase change from bullish to a warning phase and closed below the 50 day moving average. The Stochastic is showing an oversold market and is signaling a slight bullish momentum.
Expecting upward move to a daily resistance at 120.55 on a break above previous day high at 119.57 (scenario 1).