On Friday, the USD/JPY currency pair pulled back from the session highs of about 152.92 to trade at about 152.32. The currency pair trades within a descending channel formation in the 60-minute chart.

The pair also plummeted to trade a few levels below the 100-hour moving average line. As a result, the currency pair continues to trade closer to the oversold 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 U.S. market. On Friday, the industrial production for January exceeded the (MoM) forecast of 0.3% with a change of 0.5%. The retail sales for the month fell short of the forecasted change of -0.1% with a change of -0.9%, while the retail sales for the period missed 0.3% with a change of -0.4%. 

On Thursday, the producer price index for January beat the expected (MoM) change of 0.3% with a change of 0.4%. The (YoY) equivalent also beat the forecast of 3.2% with a change of 3.5%. On the other hand, the producer price index ex-food and energy outshone the forecasted (YoY) change of 3.3% with a change of 3.6%, while the (MoM) equivalent was in line with the estimate of 0.3%.

Elsewhere, the initial jobless claims for last week came in better than expected with 213k versus a forecast of 215k, down from the preceding week’s equivalent of 220k. 

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

Technically, the USD/JPY currency pair trades within a descending channel formation in the 60-minute chart. The 14-hour RSI has also plummeted to move closer to the oversold levels of the indicator.

Therefore, the bears will look to extend the current decline towards 151.73 or lower to 151.18. On the other hand, the bulls will look to pounce on profits at about 152.92 or higher at 153.47.

USD/JPY Technical Analysis (the Daily Chart)

In the daily chart, the USD/JPY currency pair trades within a descending channel formation. The 14-day RSI also supports a long-term bearish bias as it moves closer to the oversold conditions.

Therefore, the bears will look to pounce on extended declines at about 149.50 or lower at 146.59. On the other hand, the bulls will look to pounce on rebounds at about 155.40 or higher at 158.31.