On Thursday, the USD/JPY currency pair extended Wednesday’s declines to trade at about 154.40 after the latest round of data. The currency pair trades within a descending channel formation in the 60-minute chart.
The pair has now plummeted to trade a few levels below the 100-hour moving average line. As a result, the currency pair is on the verge of entering 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 both markets. Earlier in the week, the Japanese exports for October beat the (YoY) expectation of 2.2% with a change of 3.1%. Imports for the period also outshone the estimated change of -0.3% with a change of 0.4%.
On the other hand, the Japanese merchandise trade total for the month missed the expectation of -360.4 billion yen with a total of -461.2 billion yen, down from -294.1 billion yen reported for the preceding period. Traders look forward to the Japanese national consumer price index data later on Thursday.
In the U.S. the initial jobless claims for the week ending November 18 fell to 213k, down from the previous week’s equivalent of 219k, beating the forecast of 220k. On the other hand, the Philadelphia Fed Manufacturing Survey for November missed the expectation of 8 with a reading of -5.5, down from 10.3.
Earlier in the week, the U.S. building permits for October also fell short of 1.43 million with a tally of -0.6 million, while the housing starts for the month missed the estimate of 1.33 million with 1.311 million.
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 153.50 or lower to 152.70. On the other hand, the bulls will look to pounce on rebounds at about 155.19 or higher at 155.91.
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 moves closer to the overbought conditions.
Therefore, the bulls will look to stretch the current run of gains toward 158.05 or higher to 160.70. On the other hand, the bears will look to pounce on pullbacks at about 151.20 or lower to 147.44.