On Thursday, the USD/JPY currency pair bounced from the session lows of about 152.08 to trade at about 154.18 after the latest data. The currency pair also completed an upward breakout from an ascending channel formation in the 60-minute chart.

The pair has now advanced to trade several levels above the 100-hour moving average line. As a result, the currency pair has entered 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 both markets. On Thursday, the Bank of Japan voted to keep the base interest rate unchanged at 0.5%, in line with expectations. Traders will be looking forward to the Tokyo consumer price index data and the unemployment rate update for October on Friday, ahead of the retail trade data and housing data for September later in the day. 

In the U.S., the Federal Reserve voted to lower the base interest rate by 25 basis points to 4%, down from 4.25%, in line with forecasts. On the other hand, the pending home sales for September missed the expected (MoM) change of 1.7%, with a change of 0%.

Earlier in the week, the Richmond Fed manufacturing Index for October outperformed the expectation of -14, with a reading of -4, up from the preceding month’s equivalent of -17. The housing price index for August also exceeded the expected (MoM) change of 0.1%, with a change of 0.4%, while the S&P/Case-Shiller Home Price Indices for the month fell short of the forecasted (YoY) change of 1.9%, with a change of 1.6%.

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

Technically, the USD/JPY currency pair has completed an upward breakout from an ascending channel formation in the 60-minute chart. The 14-hour RSI also supports a bullish bias after entering overbought conditions.

Therefore, the bulls will look to ride the current run of gains toward 155.26 or higher to 156.36. On the other hand, the bears will look to pounce on pullbacks at about 153.15 or lower at 152.08.

USD/JPY Technical Analysis (the Daily Chart)

In the daily chart, the USD/JPY currency pair trades within an ascending channel formation. The 14-day RSI also supports a long-term bullish bias as it edges closer to overbought conditions.

Therefore, the bulls will look to pounce on extended gains at about 158.47 or higher at 162.84. On the other hand, the bears will look to pounce on pullbacks at about 149.47 or lower at 145.46.