On Thursday, the USD/JPY currency pair bounced back from the session lows of about 157.55 to trade at about 157.93. The currency pair trades within a slightly ascending channel formation on the 60-minute chart.
The pair continues to trade slightly below the 100-hour moving average line, despite the rebound. As a result, the currency pair still has room left to run before reaching the overbought levels of the 14-hour RSI.
USD/JPY Fundamentals Overview
From a fundamental perspective, the USD/JPY currency pair trades during a relatively busy period in the US market. On Thursday, the US retail sales for September came in better than expected, at a change of 0.8% (MoM) versus a forecast of 0.3%. The retail sales ex-autos for the period also beat the forecast change of 0.5%, with a change of 0.9% (MoM).
On the other hand, the producer price index for September rose to 1.3% (MoM), up from 0.5%, above the forecast of 0.5%. The (YoY) equivalent also came in stronger than expected, at 6.3% versus a forecast of 5.3%, up from 5.6% in August. The producer price index ex-food and energy for the period outshone the (MoM) and (YoY) forecasts of 0.3% and 4.4%, respectively, with changes of 0.7% and 5%, up from the previous month’s equivalent of 0.2% and 4.8%.
Elsewhere, the NY Empire State Manufacturing Index for October came in better than expected, at 25.5 versus a forecast of 10.3, up from the previous month’s equivalent of 7.6. On the other hand, the Philadelphia Fed Manufacturing Survey for the month missed the forecast of 28.4, with a reading of 20.9, down from 37.8 in September.
USD/JPY Technical Analysis (the 60-min Chart)
Technically, the USD/JPY currency pair trades within an ascending channel formation on the 60-minute chart. The 14-hour RSI has also bounced back to avoid falling into oversold conditions.
Therefore, the bulls will look to extend the latest rebound towards158.32 or higher, up to 158.75. On the other hand, the bears will look to pounce on profits at about 157.55 or lower, down to 157.13.
USD/JPY Technical Analysis (the Daily Chart)
In the daily chart, the USD/JPY currency pair trades within a descending channel formation. However, the 14-day RSI has recently bounced back to recover from oversold conditions.
Therefore, the bulls will look to extend the current rebound towards 160.37 or higher, up to 162.80. On the other hand, the bears will look to pounce on extended declines at about 155.59 or lower, down to 152.87.