On Thursday, the USD/JPY currency pair bounced from the session lows of about 161.98 to trade at about 162.39. The currency pair trades within an ascending triangle formation on the 60-minute chart.
Thursday’s rebound helped the currency pair advance a few levels above the 100-hour moving average line. However, the pair pulled back later to avoid entering 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 Philadelphia Fed Manufacturing Survey for July outperformed expectations of 13, with a reading of 41.3, up from the previous month’s equivalent of 10.3. The US initial jobless claims for last week edged lower to 208k, down from 216k in the preceding week, better than the forecasted claim count of 217k.
On the other hand, the US retail sales for June matched the forecasted (MoM) change of 0.2%. The retail sales control group for the period was also in line with the estimate of 0.5%, while the retail sales ex-autos missed the forecasted (MoM) change of -0.1%, with a change of -0.2%. Elsewhere, the pending home sales for June fell short of the forecasted change of -0.5%, with a change of -5.4% (MoM).
On Wednesday, the US producer price index for June missed the expected (MoM) rate of 0% with a rate of -0.3%. The (YoY) equivalent also fell short of 6.2%, with a rate of 5.5%. The producer price index ex-food and energy also fell short of the forecasted (MoM) and (YoY) rates of 0.4% and 5.2%, with 0.2% and 4.7%.
USD/JPY Technical Analysis (the 60-min Chart)
Technically, the USD/JPY currency pair trades within an ascending triangle formation on the 60-minute chart. However, the 14-hour RSI has recently pulled back to avoid rallying into overbought conditions.
Therefore, the bears will look to extend the current pullback towards 161.98 or lower to 161.59. On the other hand, the bulls will look to pounce on profits at about 162.77 or higher at 163.13.
USD/JPY Technical Analysis (the Daily Chart)
In the daily chart, the USD/JPY currency pair trades within an ascending channel formation. However, the 14-day RSI has recently pulled back to recover from overbought conditions.
Therefore, the bears will look to pounce on extended pullbacks at about 160.42 or lower to 158.43. On the other hand, the bulls will look to pounce on profits at about 164.34 or higher, at 166.14.