On Thursday, the USD/JPY currency pair extended Wednesday’s pullback from the current week’s high of 158.36 to trade at about 157.92. The currency pair trades within an ascending channel formation on the 60-minute chart.

The pair continues to trade slightly above the 100-hour moving average line, despite the pullback. As a result, the currency pair still has plenty of room left to run before reaching 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. In the US, personal consumption expenditures price index for September matched both the (MoM) and (YoY) forecasts of 0.5% and 3.6%, respectively. The core personal consumption expenditures price index for the period was also in line with the estimates of 0.3% (MoM) and 3.1% (YoY). 

Personal income for the month fell short of the forecasted (MoM) change of 0.3%, with a change of 0.2%, while personal spending missed the forecast of 0.6%, with a change of 0.5%. On the other hand, the preliminary annualized US gross domestic product for Q3 beat the expected change of 3.2%, with a change of 3.4%. The preliminary gross domestic product price index for the period fell short of 3.5%, with a change of 2.2%. 

In Japan, traders will be looking forward to the consumer price index data for October and the September unemployment rate and retail sales data on Friday morning, ahead of the Bank of Japan’s interest rate decision later in the day.

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. However, the 14-hour RSI still has plenty of room left to run before reaching overbought conditions.

Therefore, the bulls will look to extend the current gains toward 158.36 or higher, up to 158.86. On the other hand, the bears will look to pounce on pullbacks at about 157.41 or lower, down to 156.87.

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 avoid falling into oversold conditions.

Therefore, the bulls will look to extend the current rebound towards 160.67 or higher, up to 163.59. On the other hand, the bears will look to pounce on profits at about 154.84 or lower, down to 151.92.