The USD/JPY currency pair on Friday pulled back to trade below the 100-hour moving average line after the latest US consumer sentiment data. The currency pair still appears to be trading within a sideways channel formation in the 60-min chart.

The pair has now fallen to trade closer to the oversold conditions of the 14-hour RSI. This could trigger a temporary rebound.

USD/JPY Fundamentals Overview

From a fundamental perspective, the USD/JPY currency pair is trading at the back of a relatively busy period in both markets. On Friday, the preliminary Michigan Consumer Sentiment Index for September missed the expectation of 60 with a reading of 59.5. On the other hand, the initial jobless claims for last week outshone the forecasted claim count of 226k with a lower tally of 213k. However, the US retail sales control group for August failed to match the expectation of 0.5% with a change of 0%, while general retail sales outshone the forecasted (MoM) change of 0% with a change of 0.3%.

In Japan, Industrial production for July missed the expected (YoY) change of -1.8% with a change of -2%, while the (MoM) equivalent missed the forecast of 1% with a change of 0.8%. Elsewhere, capacity utilisation for July outperformed the expected change of 1.1% with a change of 2.4% on Wednesday. Earlier in the week, Machinery Orders for July beat the forecast of 6.6% with a growth rate of 12.8% (YoY), while the (MoM) equivalent outshone -0.8% with a change of 5.3%.

USD/JPY Technical Analysis (the 60-min Chart)

Technically, the USD/JPY currency pair seems to be trading within a sideways channel formation in the 60-min chart. This indicates a lack of clear directional bias in the market sentiment.

Therefore, the bears will be targeting potential downward channel breakout profits at about 142.248 or lower at 141.582. On the other hand, the bulls will be looking to pounce on profits at about 143.545 or higher at 144.212.

USD/JPY Technical Analysis (the Daily Chart)

In the daily chart, the USD/JPY currency pair seems to be trading within an ascending channel formation. This indicates a significant long-term bullish bias in the market sentiment.

Therefore, the bulls will be looking to extend the current rally toward 146.263 or higher to 149.547. On the other hand, the bears will be targeting long-term profits at about 140.042 or lower at 136.586.