USD/JPY Bounces Off 100-Hour MA to Reach New Monthly Highs

The USD/JPY currency pair on Friday bounced off the 100-hour moving average line to trade at a new monthly high of about 135.577. The currency pair continues to trade within an ascending channel formation in the 60-min chart.

Friday’s rebound pushed the currency pair several levels above the 100-hour MA. However, it pulled back slightly late on after reaching the overbought conditions of the 14-hour RSI.

USD/JPY Fundamentals Overview

From a fundamental perspective, the currency pair is trading at the back of a relatively busy period in the US market. On Friday, the US economy registered a positive net jobs figure of 528k for July, which was more than double the target of 250k. The economy also registered a significantly lower unemployment rate of 3.5%, down from 3.6% in June, and ahead of estimates of 3.6%.

The average hourly wage growth for July rose by 5.2% on a year-over-year basis, while also posting a sequential growth of 0.5%. In comparison, the market expected growth rates of 4.9% and 0.3%, respectively. Earlier in the week, the initial and continuing jobless claims missed estimates.

In Japan, the preliminary leading economic index for June missed the expectation of 101.2 with a reading of 100.6. On the other hand, the preliminary coincidence index for the period beat 94.2 with 99. Earlier in the week, Japan’s overall householding spending for June grew by 3.5% (YoY), ahead of the average estimate of 1.5%. On the other hand, labour cash earnings for the period outshone 2.1% with 2.2% (YoY).

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

Technically, the USD/JPY currency pair seems to be trading within an ascending channel formation in the 60-min chart. This indicates a significant short-term bullish bias in the market sentiment.

Therefore, the bears will be targeting short-term profits at about 134.367, or lower at 133.763. On the other hand, the bulls will be looking to extend the current rally toward 135.577 or higher to 136.204.

USD/JPY Technical Analysis (the Daily Chart)

In the daily chart, the AUD/USD currency pair seems to be trading within a sharply descending channel formation. This indicates a strong long-term bearish bias in the market sentiment.

Therefore, the bears will be looking to extend the current run of declines toward 133.051 or lower to 130.671. On the other hand, the bulls will be targeting long-term profits at about 137.240, or higher at 139.383.

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