The USD/JPY currency pair on Friday pulled back off the current 32-year highs of about 151.860 to trade at about 147.649. The currency pair has now plummeted to trade below the 100-hour moving average line, following the pullback.

The pair seems to be about to form an ascending channel in the 60-min chart after bouncing off key support at 146.330. The pair has since returned to the normal trading zone after testing both the overbought and oversold conditions of the 14-hour RSI on the same day.

USD/JPY Fundamentals Overview

From a fundamental perspective, the USD/JPY currency pair is trading at the back of a relatively busy period in both markets. On Thursday, the Japanese National Consumer Price Index for September missed the expectation of 3.1% with a (YoY) change of %. On the other hand, National CPI ex-food and energy also missed the forecasted (YoY) change of 2% with a change of 1.8%, while National CPI ex-fresh food was in line with the estimate of 3%. Earlier in the week, Japanese exports and imports outperformed the (YoY) estimates of 27.1% and 45%, respectively with a change of 28.9% and 45.9%.

In the US, building permits for September outperformed the expectation of 1.53 million with a tally of 1.564 million (MoM). On the other hand, housing starts for the same period missed the forecast of 1.475 million with a tally of 1.439 million. On Thursday, the initial jobless claims beat 230k with a tally of 214k, while continuing claims came short of 1.375 million with a claim count of 1.385 million.

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

Technically, the USD/JPY currency pair seems to be trading within a sharply ascending channel formation after bouncing back from Friday’s sharp pullback. This indicates a highly volatile trading session.

The bulls will be looking to extend the current rebound towards 148.381 or higher to 149.076. On the other hand, the bears will look to pounce o profits at about 146.993 or lower at 146.330.

USD/JPY Technical Analysis (the Daily Chart)

In the daily chart, the USD/JPY currency pair seems to be trading within an ascending channel formation. This indicates a significant long-term bullish bias in the market sentiment.

Therefore, the bulls will be looking to extend the current rally towards 150.123 or higher to 151.860. On the other hand, the bears will be targeting long-term profits at about 145.917 or lower at 144.088.